Ferrellgas obtains needed consents to amend 9 1/8% notes due 2017

By Jennifer Chiou

New York, Nov. 4 - Ferrellgas, LP said it notched valid tenders for $197,468,000 principal amount, or 65.82%, of its $300 million of outstanding 9 1/8% senior notes due 2017 issued by the company and Ferrellgas Finance Corp. as of the consent deadline of 5 p.m. ET on Nov. 1.

The company is soliciting consents to amend the notes to eliminate substantially all of the restrictive covenants and events of default.

Following settlement of the early tenders on Nov. 4, the company executed a supplemental indenture implementing the proposed amendments to the indenture.

The total purchase price will be $1,050.63, including a consent payment of $30.00, for each $1,000 principal amount of notes tendered by the consent deadline.

The tender offer will end at 11:59 p.m. ET on Nov. 18.

Those who tender their notes after the consent deadline will receive $1,020.63 per $1,000 of notes.

The company will pay accrued interest to but excluding the settlement date, which was Nov. 4 for early tendered notes and will be Nov. 19 for remaining tenders.

The tender offer and consent solicitation are conditioned on the completion of debt financing and the supplemental indenture.

BofA Merrill Lynch (888 292-0070 or collect 980 387-3907) is dealer manager and solicitation agent. D.F. King & Co., Inc. (800 431-9643 or 212 269-5550) is the tender agent and information agent.

Ferrellgas is an Overland Park, Kan.-based distributor of propane and related equipment. It launched the offer and solicitation on Oct. 21.

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