Ferrellgas to repay amounts outstanding under its credit facility

By Rebecca Melvin

New York, April 7 – Ferrellgas LP and Ferrellgas Finance Corp. announced that they intend to use a portion of the proceeds of a bond offering to repay all of the outstanding debt under their existing senior secured credit facility.

The facility will terminate upon completion of the offering, with cash used to collateralize all of the letters of credit outstanding under the existing senior secured credit facility. Any remaining proceeds are for general corporate purposes.

The Overland Park, Kan.-based distributor of propane and related equipment said it plans to offer $575 million of senior secured first-lien notes due 2025. The notes will be senior secured first-lien obligations of the issuers and will be guaranteed on a senior secured first-lien basis by Ferrellgas Partners LP, Ferrellgas Inc. and the existing and future subsidiaries of the company.

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