New Issue: AmeriGas sells upsized $700 million 8.5-year notes at par to yield 5½%

By Paul A. Harris

Portland, Ore., Dec. 13 – AmeriGas Partners, LP and AmeriGas Finance Corp. priced an upsized $700 million issue of 8.5-year senior bullet notes (Ba3//BB) at par to yield 5½% on Tuesday, according to market sources.

The issue size was increased from $550 million.

The yield printed at the tight end of the 5½% to 5¾% yield talk and inside of initial guidance in the 5¾% area.

Wells Fargo Securities LLC was the left bookrunner. J.P. Morgan Securities LLC was the joint bookrunner.

The Valley Forge, Pa.-based propane marketer plans to use the proceeds to repay a portion of its 7% senior notes due 2022 and to repay debt under its senior unsecured revolving credit facility.

Issuers:	AmeriGas Partners, LP and AmeriGas Finance Corp.
Amount:	$700 million, increased from $550 million
Maturity:	May 20, 2025
Securities:	Senior notes
Left bookrunner:	Wells Fargo Securities LLC
Joint bookrunner:	J.P. Morgan Securities LLC
Senior co-managers:	Citigroup Global Markets Inc., Citizens Capital Markets Inc., Credit Suisse Securities (USA) LLC, BofA Merrill Lynch, PNC Capital Markets LLC
Co-managers:	BB&T Capital Markets, BNY Mellon Capital Markets LLC, Santander Investment Securities Inc., TD Securities (USA) LLC
Coupon:	5½%
Price:	Par
Yield:	5½%
Spread:	307 bps
Call protection:	Make-whole at Treasuries plus 50 bps until to Feb. 20, 2025, then callable at par, otherwise non-callable
Trade date:	Dec. 13
Settlement date:	Dec. 28
Ratings:	Moody's: Ba3
	Fitch: BB
Distribution:	SEC registered
Price talk:	5½% to 5¾%
Marketing:	Quick to market

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