Ferrellgas' Debt Prepayment

• By Zacks Equity Research
• On 1:00 pm EDT, Tuesday October 20, 2009

Ferrellgas Partners L.P. (NYSE: FGP - News), through its partnership Ferrellgas L.P., yesterday prepaid its outstanding $82.0 million of 7.24% senior notes, Series D, due Aug 1, 2010, and its $70.0 million of 7.42% senior notes, Series E, due Aug 1, 2013. The debt prepayment was funded by the issuance of $300 million in aggregate principal amount of 9.125% senior notes due 2017, which reduced Ferrellgas’ borrowings outstanding on senior unsecured revolving credit facility. 

The partnership also funded the prepayment through a $20.0 million equity offering, issuing 1,058,454 common units representing limited partner interests in a registered direct offering to two institutional purchasers. 

Ferrellgas continues to be focused on its near and long-term liquidity to support its business strategies. These transactions provide it with financial flexibility required to fund its growth opportunities. The partnership also announced the anticipated closing of its previously announced plans to refinance a $400 million working capital credit facility due 2012 by the month end. 

Ferrellgas Partners L.P., a master limited partnership, is a leading distributor of propane and related equipment in the U.S. The partnership’s strategy is relatively simple: achieve operating efficiencies through the utilization of technology in its operations; capitalize on its national presence and economies of scale; expand its operations through disciplined acquisitions and internal growth; and align employee interest with investors through significant employee ownership.

FERRELLGAS PARTNERS L.P. (FGP): Read the Full Research Report

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