UGI units sign €800 million multicurrency facility agreement

By Mary-Katherine Stinson

Lexington, Ky., March 8 – UGI Corp.’s wholly owned subsidiaries UGI International, LLC and UGI International Holdings BV as the Dutch borrower signed a multicurrency facilities agreement on March 7 with Natixis as the agent, according to an 8-K filing with the Securities and Exchange Commission.

The agreement provides for a €300 million term loan and a €500 million revolving credit, including a €100 million sublimit for swingline loans.

Borrowings under the term loan will bear interest at Euribor plus 170 basis points to 335 bps.

Borrowings for the revolver will be at Euribor plus 135 bps to 335 bps.

Rates are based on the total net leverage ratio.

The commitment fee for the revolver is 35 bps.

The credit facility matures March 7, 2028 and borrowers may voluntarily prepay any loans without penalty at any time.

In addition, the agreement requires UGI International to maintain a consolidated net leverage ratio of not more than 3.85x, provided that the maximum ratio permitted may be increased to 4.25x for two consecutive testing dates following a permitted acquisition. This ratio is tested every March 31 and September 30.

Each borrower is the sole guarantor.

Natixis and Credit Agricole Corporate and Investment Bank are the active bookrunners.

BNP Paribas, HSBC Continental Europe, ING Bank NV, French branch and Raiffeisen Bank International AG are also listed as bookrunners and mandated lead arrangers.

Barclays Bank Ireland plc is a mandated lead arranger.

Danske Bank A/S served as lead arranger with Natixis and Credit Agricole Corporate and Investment Bank as coordinators for the multicurrency agreement.

Proceeds were used to refinance the existing credit agreement and are available to finance the working capital needs of UGI International and its subsidiaries and for general corporate purposes.

In connection with the agreement, UGI International has paid off in full and terminated its multicurrency facilities agreement dated Oct. 18, 2018.

UGI Corp. is a natural gas and electric power distribution company headquartered in King of Prussia, Penn.

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