Ferrellgas begins marketing $1.48 billion senior notes in two parts

By Paul A. Harris

Portland, Ore., March 15 – Ferrellgas, LP, in conjunction with Ferrellgas Finance Corp., plans to sell $1.475 billion of senior notes (B3) in two tranches, according to market sources.

The deal includes five-year notes, which come with two years of call protection and initial guidance in the 5½% area, and eight-year notes, which come with three years of call protection and initial guidance in the 6% area. Tranche sizes remain to be determined.

Pricing is expected on Wednesday.

J.P. Morgan Securities LLC is the lead.

The issuing entities will be Ferrellgas Escrow, LLC, a wholly owned direct subsidiary of Ferrellgas, LP, and FG Operating Finance Escrow Corp., a wholly owned direct subsidiary of Ferrellgas Finance.

The Overland Park, Kan.-based propane supplier plans to use the proceeds in connection with its restructuring under Chapter 11 bankruptcy.

Ferrellgas filed for Chapter 11 in January 2021.

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