By Abigail W. Adams
Portland, Me., May 22 – AmeriGas Partners LP and AmeriGas Finance Corp. priced $500 million of five-year senior notes (B1//BB-) in a Monday drive-by at par to yield 9 3/8%, according to a market source.
Pricing came at the wide end of talk for a yield in the 9¼% area. Early guidance was for a yield in the low 9% area.
The notes are non-callable for two years.
Wells Fargo Securities LLC (lead left), BofA Securities Inc., Citizens Capital Markets Inc., Credit Agricole CIB, Truist Securities, Inc. and J.P. Morgan Securities LLC are bookrunners for the Rule 144A and Regulation S offering.
Proceeds will be used, together with cash on hand and a $150 million contribution from UGI Corp and or other sources, to refinance the company’s 5 5/8% senior notes due 2024.
AmeriGas is a King of Prussia, Pa.-based propane distributor.
| Issuers: | AmeriGas Partners LP and AmeriGas Finance Corp.
|
| Amount: | $500 million
|
| Issue: | Senior notes
|
| Maturity: | June 1, 2028
|
| Lead bookrunner: | Wells Fargo Securities LLC
|
| Joint bookrunners: | BofA Securities Inc., Citizens Capital Markets Inc., Credit Agricole CIB, Truist Securities, Inc. and J.P. Morgan Securities LLC
|
| Coupon: | 9 3/8%
|
| Price: | Par
|
| Yield: | 9 3/8%
|
| Spread: | 561 bps
|
| First call: | June 1, 2025 at 104.688
|
| Equity clawback: | Up to 40% at 109.375
|
| Trade date: | May 22
|
| Settlement date: | May 31
|
| Ratings: | Moody’s: B1
|
| Fitch: BB-
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 9¼% area
|
| Marketing: | Drive-by
|
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