By Paul A. Harris
Portland, Ore., April 8 – Ferrellgas, LP and its wholly owned subsidiary Ferrellgas Finance Corp. priced $575 million of five-year senior secured notes (B3/CCC) at par to yield 10% on Wednesday, according to market sources.
The yield printed at the tight end of the 10% to 10¼% yield talk. Early guidance was 10½% to 11%.
The deal was heard to be 10 times oversubscribed, according to a bond trader, who saw the new Ferrellgas 10% notes due 2025 trading at 104 late Wednesday afternoon.
The Overland Park, Kan.-based propane supplier plans to use the proceeds to pay off its existing senior secured credit facility, which it will terminate upon completion of the notes sale, and to cash collateralize all of the letters of credit outstanding under the existing senior secured credit facility, with the remainder of the proceeds to be used for general corporate purposes.
| Issuers: | Ferrellgas LP and Ferrellgas Finance Corp.
|
| Amount: | $575 million
|
| Tenor: | Five years
|
| Securities: | Senior secured notes
|
| Lead: | J.P. Morgan Securities LLC
|
| Coupon: | 10%
|
| Price: | Par
|
| Yield: | 10%
|
| Call protection: | Two years
|
| Trade date: | April 8
|
| Settlement date: | April 16
|
| Ratings: | Moody's: B3
|
| S&P: CCC
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 10% to 10¼%
|
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