New Issue: AmeriGas prices $525 million 10.25-year notes at par to yield 5¾%

By Paul A. Harris

Portland, Ore., Feb. 6 – AmeriGas Partners, LP and co-issuer AmeriGas Finance Corp., a wholly owned subsidiary, priced a $525 million issue of non-callable 10.25-year senior notes (Ba3/BB/BB) at par to yield 5¾% on Monday, according to market sources.

The yield printed at the wide end of the 5½% to 5¾% yield talk. Initial guidance was also 5½% to 5¾%.

J.P. Morgan Securities LLC, Wells Fargo Securities, LLC, Citigroup Global Markets Inc. and BofA Merrill Lynch were the joint bookrunners.

The Valley Forge, Pa.-based propane marketer plans to use the proceeds to finance a tender offer for its 7% senior notes due 2022 and for general business purposes.

Issuers:	AmeriGas Partners, LP and AmeriGas Finance Corp.
Amount:	$525 million
Maturity:	May 20, 2027
Securities:	Senior notes
Bookrunners:	J.P. Morgan Securities LLC, Wells Fargo Securities LLC, Citigroup Global Markets Inc., BofA Merrill Lynch
Senior co-managers:	Citizens Capital Markets Inc., Credit Suisse Securities (USA) LLC, PNC Capital Markets LLC
Co-managers:	BB&T Capital Markets, BNY Mellon Capital Markets LLC, Santander Investment Securities Inc., TD Securities (USA) LLC
Coupon:	5¾%
Price:	Par
Yield:	5¾%
Spread:	336 bps
Call protection:	Make-whole at Treasuries plus 50 bps until Feb. 20, 2027, then callable at par, otherwise non-callable
Trade date:	Feb. 6
Settlement date:	Feb. 13
Ratings:	Moody's: Ba3
	S&P: BB
	Fitch: BB
Distribution:	SEC registered
Price talk:	5½% to 5¾%
Marketing:	Quick to market

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