Ferrellgas Secures $500M Credit Facility, Redeems Notes
Ticker: FGPR · Form: 8-K · Filed: Jul 11, 2024 · CIK: 922358
| Field | Detail |
|---|---|
| Company | Ferrellgas Partners L P (FGPR) |
| Form Type | 8-K |
| Filed Date | Jul 11, 2024 |
| Risk Level | medium |
| Pages | 4 |
| Reading Time | 4 min |
| Key Dollar Amounts | $124.5 million, $0.9 m, $1.4 m, $169.3 million, $190 million |
| Sentiment | bullish |
Sentiment: bullish
Topics: debt-refinancing, credit-facility, debt-redemption
TL;DR
Ferrellgas just got a $500M credit line and paid off some old debt. Good for cash flow.
AI Summary
On July 10, 2024, Ferrellgas Partners L.P. and its subsidiaries, Ferrellgas Finance Corp. and Ferrellgas Partners Finance Corp., entered into a new credit agreement. This agreement provides a $500 million revolving credit facility, maturing on July 10, 2029, with an initial interest rate of SOFR plus a margin. The company also announced the early redemption of its 7.00% Senior Notes due 2026.
Why It Matters
This refinancing provides Ferrellgas with significant liquidity and extends its debt maturity, improving its financial flexibility and potentially reducing borrowing costs.
Risk Assessment
Risk Level: medium — While the new credit facility is positive, the company's reliance on debt and the energy sector's cyclical nature present ongoing risks.
Key Numbers
- $500M — Revolving Credit Facility (Provides significant liquidity and financial flexibility.)
- 2029 — Credit Facility Maturity (Extends the company's debt maturity profile.)
Key Players & Entities
- Ferrellgas Partners L.P. (company) — Primary filer and borrower
- Ferrellgas Finance Corp. (company) — Subsidiary and borrower
- Ferrellgas Partners Finance Corp. (company) — Subsidiary and borrower
- $500 million (dollar_amount) — Amount of the new revolving credit facility
- July 10, 2029 (date) — Maturity date of the new credit facility
- July 10, 2024 (date) — Effective date of the new credit agreement
- 7.00% Senior Notes due 2026 (debt) — Notes being redeemed
FAQ
What is the interest rate on the new $500 million revolving credit facility?
The interest rate is SOFR plus a margin, as detailed in the credit agreement filed with the SEC.
When does the new $500 million credit facility mature?
The new credit facility matures on July 10, 2029.
Which specific debt instrument did Ferrellgas announce the early redemption of?
Ferrellgas announced the early redemption of its 7.00% Senior Notes due 2026.
What is the total amount of the new revolving credit facility?
The total amount of the new revolving credit facility is $500 million.
What are the names of the Ferrellgas entities involved in the new credit agreement?
The entities involved are Ferrellgas Partners L.P., Ferrellgas Finance Corp., and Ferrellgas Partners Finance Corp.
Filing Stats: 1,078 words · 4 min read · ~4 pages · Grade level 10.6 · Accepted 2024-07-11 16:01:09
Key Financial Figures
- $124.5 million — dit in an aggregate principal amount of $124.5 million were issued as Eddystone Litigation App
- $0.9 m — LLC ("Bridger Energy") in the amount of $0.9 million, Bridger Transportation, LLC ("Br
- $1.4 m — idger Transportation") in the amount of $1.4 million, and Ferrellgas Partners and Brid
- $169.3 million — and Bridger Logistics in the amount of $169.3 million. Ferrellgas Partners, Bridger Logisti
- $190 million — e "Bonded Appellants") in the amount of $190 million (the "Appeal Bond") and granting a stay
Filing Documents
- fgp-20240710x8k.htm (8-K) — 108KB
- 0001558370-24-009761.txt ( ) — 284KB
- fgp-20240710.xsd (EX-101.SCH) — 4KB
- fgp-20240710_def.xml (EX-101.DEF) — 12KB
- fgp-20240710_lab.xml (EX-101.LAB) — 18KB
- fgp-20240710_pre.xml (EX-101.PRE) — 12KB
- fgp-20240710x8k_htm.xml (XML) — 19KB
01 Other Events
Item 8.01 Other Events. As previously disclosed, Ferrellgas Partners, L.P. ("Ferrellgas Partners") and Bridger Logistics, LLC ("Bridger Logistics") were named, along with certain other defendants, in a lawsuit (the "EDPA Lawsuit") filed by Eddystone Rail Company ("Eddystone") on February 2, 2017, in the U.S. District Court for the Eastern District of Pennsylvania (the "District Court"). On June 7, 2024, the District Court entered an Order and Judgment (the "Judgment") in the EDPA Lawsuit in favor of Eddystone and against Bridger Energy, LLC ("Bridger Energy") in the amount of $0.9 million, Bridger Transportation, LLC ("Bridger Transportation") in the amount of $1.4 million, and Ferrellgas Partners and Bridger Logistics in the amount of $169.3 million. Ferrellgas Partners, Bridger Logistics, Bridger Energy and Bridger Transportation (collectively, the "Appellants") filed their notice of appeal on July 3, 2024 to appeal the Judgment to the U.S. Court of Appeals for the Third Circuit. On July 9, 2024, the District Court approved an order approving an appeal bond on behalf of Ferrellgas Partners, Bridger Energy, and Bridger Transportation (the "Bonded Appellants") in the amount of $190 million (the "Appeal Bond") and granting a stay of execution with respect to the Bonded Appellants.
01 Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits Exhibit No. Description 104 Cover Page Interactive Data File (embedded within the Inline XBRL document).
SIGNATURES
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, each registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. FERRELLGAS PARTNERS, L.P. By: Ferrellgas, Inc., its general partner Date: July 11, 2024 By: /s/ Michael E. Cole Chief Financial Officer (Principal Financial and Accounting Officer) FERRELLGAS PARTNERS FINANCE CORP. Date: July 11, 2024 By: /s/ Michael E. Cole Chief Financial Officer and Sole Director (Principal Financial and Accounting Officer) FERRELLGAS, L.P. By: Ferrellgas, Inc., its general partner Date: July 11, 2024 By: /s/ Michael E. Cole Chief Financial Officer (Principal Financial and Accounting Officer) FERRELLGAS FINANCE CORP. Date: July 11, 2024 By: /s/ Michael E. Cole Chief Financial Officer and Sole Director (Principal Financial and Accounting Officer)