Ferrellgas launches cash tender offer for 6¾% senior notes due 2014

By Marisa Wong

Madison, Wis., Nov. 9 - Ferrellgas, LP said it started a cash tender offer to purchase any and all of Ferrellgas Finance Corp.'s $450 million of outstanding 6¾% senior notes due 2014.

The tender offer is scheduled to expire at 11:59 p.m. ET on Dec. 8.

Holders who tender their notes at or before 5 p.m. ET on Nov. 23, the early tender date, will receive the total consideration of $1,025 per $1,000 principal amount of notes, which includes an early tender payment of $2.50 per $1,000 of notes.

Holders who tender their notes after the early tender date and at or prior to the expiration date will receive the tender offer consideration of $1,022.50 per $1,000 of notes, which is the total consideration less the early tender payment.

In addition, holders will receive accrued interest to but excluding the applicable payment date.

The company said it expects to have an initial acceptance date and initial purchase date for notes tendered at or before the early tender date, followed by a final acceptance date and final purchase date promptly following the expiration of the offer.

The tender offer is conditioned on closing of the company's previously announced offering of senior notes, the proceeds of which will be used to fund the purchase of the 6¾% notes.

J.P. Morgan (800 245-8812) and Wells Fargo Securities (866 309-6316 or 704 715-8341) are joint dealer managers for the tender offer, and i-Deal LLC (888 593-9546 or 212 849-5000) is the depositary and information agent.

Ferrellgas is an Overland Park, Kan.-based distributor and seller of propane and related equipment.

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