UGI Subsidiary AmeriGas Launches $500M Note Offering, Reduces Debt & Improves Leverage

summarizeSummary

UGI's subsidiary AmeriGas is refinancing debt, reducing overall leverage by $343 million, and extending maturities through a new $500 million note offering and a $300 million equity injection from its parent.

check_boxKey Events

• New Senior Notes Offering

  AmeriGas Partners and AmeriGas Finance Corp., indirect wholly owned subsidiaries of UGI, commenced a private offering of $500 million in senior notes due 2031.

• Debt Tender Offers

  The proceeds from the new notes, along with an equity contribution, will fund tender offers for all outstanding $512 million of 5.750% Senior Notes due 2027 and up to $175 million of 9.375% Senior Notes due 2028.

• Equity Contribution from Parent

  UGI International, a wholly owned indirect subsidiary of UGI, provided a $300 million cash equity contribution to AmeriGas Partners.

• Intercompany Loan Repayment

  $150 million in outstanding indebtedness under an intercompany loan between AmeriGas Partners and UGI International will be repaid.

auto_awesomeAnalysis

UGI's indirect subsidiary, AmeriGas, is executing a significant financial restructuring. It is issuing $500 million in new senior notes and receiving a $300 million equity contribution from its parent, UGI International. These funds will be used to repurchase existing higher-interest notes and repay an intercompany loan. This proactive move is expected to reduce AmeriGas's total debt by $343 million and improve its net debt to LTM Adjusted EBITDA ratio from 4.7x to 3.8x, strengthening its balance sheet and extending debt maturities.