Moody’s assigns Ba3 to AmeriGas notes

Moody's Investors Service said it assigned a Ba3 rating to AmeriGas Partners, LP's proposed $525 million senior unsecured notes due 2027.

AmeriGas' other ratings and stable outlook were unchanged given that this transaction is primarily a refinancing with little effect on financial leverage.

Proceeds from the offering will be used to tender the remaining portion of the 7% senior notes due 2022 and to cover related expenses.

The proposed unsecured notes will rank equally in right of payment with AmeriGas' existing 2024, 2025 and 2026 senior notes in a potential default scenario and therefore were assigned the same Ba3 rating.

The senior notes are rated one notch below the Ba2 corporate family rating because of the significant size ($525 million) of the priority-claim credit facility in AmeriGas' capital structure, Moody’s said.

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