By Paul A. Harris
Portland, Ore., March 16 – Ferrellgas, LP, in conjunction with Ferrellgas Finance Corp., priced $1.475 billion of senior notes (B3/B-) in two tranches on Tuesday, according to market sources.
The deal included $650 million of five-year notes that price at par to yield 5 3/8%, in the middle of the 5¼% to 5½% yield talk. Initial guidance was in the 5½% area.
It also included $825 million of eight-year notes that priced at par to yield 5 7/8%, in the middle of the 5¾% to 6% yield talk. Initial guidance was in the 6% area.
The deal was heard to be two-times oversubscribed on Tuesday morning, a trader said.
Timing was accelerated. The deal had been expected to remain in the market until Wednesday.
J.P. Morgan Securities LLC was at the left of a syndicate of managers that also included PNC Capital Markets LLC, RBC Capital Markets LLC and Truist Securities Inc.
The issuing entities are 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.
| Issuers: | Ferrellgas Escrow, LLC and FG Operating Finance Escrow Corp.
|
| Amount: | $1.475 billion
|
| Securities: | Senior notes
|
| Leads: | J.P. Morgan Securities LLC, PNC Capital Markets LLC, RBC Capital Markets LLC and Truist Securities Inc.
|
| Trade date: | March 16
|
| Settlement date: | March 30
|
| Ratings: | Moody's: B3
|
| S&P: B-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Roadshow
|
|
|
| Five-year notes
|
| Amount: | $650 million
|
| Maturity: | April 1, 2026
|
| Coupon: | 5 3/8%
|
| Price: | Par
|
| Yield: | 5 3/8%
|
| Spread: | 455 bps
|
| Call protection: | Two years
|
| Price talk: | 5¼% to 5½%
|
|
|
| Eight-year notes
|
| Amount: | $825 million
|
| Maturity: | April 1, 2029
|
| Coupon: | 5 7/8%
|
| Price: | Par
|
| Yield: | 5 7/8%
|
| Spread: | 448 bps
|
| Call protection: | Three years
|
| Price talk: | 5¾% to 6%
|
|
|
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