AmeriGas launches cash tender offer for 7¼% series A, B senior notes

By Marisa Wong

Madison, Wis., Jan. 5 - AmeriGas Partners, LP said it began an offer to purchase for cash any and all of its $1.1 million of outstanding 7¼% series A senior notes due 2015 and its $413.9 million of 7¼% series B senior notes due 2015 on Wednesday.

AmeriGas is also soliciting consents to proposed amendments to eliminate substantially all of the restrictive covenants in the indenture governing the notes and certain other provisions.

The tender offer will expire at 11:59 p.m. ET on Feb. 2.

Holders who tender their notes and deliver their consents by 5 p.m. ET on Jan. 19, the consent date, will receive a total consideration of $1,039.50 for each $1,000 principal amount of the notes accepted for purchase, which includes a $30.00 consent payment.

Holders who tender their notes after the consent date but prior to the expiration date will be paid $1,009.50 per $1,000 principal amount of the notes accepted, which is equal to the total consideration less the consent payment.

AmeriGas said it will also pay accrued interest up to but excluding the applicable payment date. The initial payment date for notes accepted by the consent date is expected be Jan. 20. The final payment date is expected to be Feb. 3.

Holders may not tender their notes without delivering consents and may not deliver consents without tendering notes. Holders may not withdraw tendered notes after the consent date.

The tender offer and consent solicitation are conditioned upon the receipt of tenders and consents from holders of a majority in principal amount of the outstanding notes before the consent date, the execution and delivery of a supplemental indenture and the receipt of proceeds from a public offering of debt securities to fund the tender offer.

Credit Suisse Securities (USA) LLC (800 820-1653 or 212 538-2147) is the dealer manager and solicitation agent, and J.P. Morgan Securities LLC, RBS Securities Inc. and Wells Fargo Securities, LLC are co-dealer managers and solicitation agents. D.F. King & Co., Inc. (800 848-2998 or 212 493-6996) is the information agent for the offer.

AmeriGas is a King of Prussia, Pa.-based retail propane distributor.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.