New Issue: Ferrellgas prices $150 million tap of 6¾% notes due 2022 at 104 to yield 5.877%

By Paul A. Harris

Portland, Ore., June 10 – Ferrellgas LP and Ferrellgas Finance Corp. priced a $150 million add-on to their 6¾% senior notes due Jan. 15, 2022 (B2/B+) at 104 to yield 5.877% on Tuesday, according to a syndicate source.

The reoffer price came at the rich end of the 103.75 to 104 price talk.

Wells Fargo Securities LLC was the left bookrunner. BofA Merrill Lynch and J.P. Morgan Securities LLC were the joint bookrunners.

The Overland Park, Kan.-based propane supplier plans to use the proceeds for general corporate purposes, including to repay debt under its secured credit facility.

Issuers:	Ferrellgas, LP and Ferrellgas Finance Corp.
Face amount:	$150 million
Proceeds:	$156 million
Maturity:	Jan. 15, 2022
Security description:	Add-on to 6¾% senior notes due Jan. 15, 2022
Left bookrunner:	Wells Fargo Securities, LLC
Joint bookrunners:	BofA Merrill Lynch, J.P. Morgan Securities LLC
Co-managers:	Capital One Securities Inc., Fifth Third Securities Inc., Mitsubishi UFJ Securities (USA) Inc., SunTrust Robinson Humphrey Inc.
Coupon:	6¾%
Price:	104
Yield:	5.877%
Spread:	404 bps
First call:	Nov. 15, 2016 at 105.063
Trade date:	June 10
Settlement date:	June 13 with accrued interest
Ratings:	Moody's: B2
	Standard & Poor's: B+
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	103.75 to 104
Marketing:	Quick to market
Original issue:	$325 million priced at par on Oct. 21, 2013
Fungibility:	Add-on notes will be immediately fungible with the original notes
Total issue size:	$475 million

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