Ferrellgas Partners Secures $1.5B Credit Facility & $300M Notes
Ticker: FGPR · Form: 8-K · Filed: Dec 10, 2024 · CIK: 922358
| Field | Detail |
|---|---|
| Company | Ferrellgas Partners L P (FGPR) |
| Form Type | 8-K |
| Filed Date | Dec 10, 2024 |
| Risk Level | medium |
| Pages | 4 |
| Reading Time | 5 min |
| Sentiment | neutral |
Sentiment: neutral
Topics: debt-refinancing, credit-facility, notes-issuance
TL;DR
Ferrellgas just locked in $1.8B in new debt, pushing maturities out to 2029/2031. Big refi!
AI Summary
On December 5, 2024, Ferrellgas Partners L.P. and its subsidiaries entered into a new credit agreement, amending and restating their existing credit facilities. This agreement provides for a new $1.2 billion revolving credit facility and a $300 million term loan facility, maturing on December 5, 2029. The company also entered into a new senior secured note purchase agreement for $300 million in aggregate principal amount of senior secured notes due December 15, 2031.
Why It Matters
This significant refinancing provides Ferrellgas with substantial liquidity and extends its debt maturity profile, potentially improving its financial flexibility and reducing near-term refinancing risk.
Risk Assessment
Risk Level: medium — While the refinancing improves liquidity and extends maturities, it involves significant debt obligations and potential interest rate fluctuations.
Key Numbers
- $1.2B — Revolving Credit Facility (Provides new liquidity for operations and general corporate purposes.)
- $300M — Term Loan Facility (Additional financing to support the company's capital structure.)
- $300M — Senior Secured Notes (Longer-term debt issuance to further strengthen the balance sheet.)
- 2029 — Credit Facility Maturity (Extends the maturity of a significant portion of debt.)
- 2031 — Senior Secured Notes Maturity (Provides long-term capital with a distant maturity date.)
Key Players & Entities
- Ferrellgas Partners L.P. (company) — Registrant
- December 5, 2024 (date) — Date of credit agreement
- $1.2 billion (dollar_amount) — Revolving credit facility amount
- $300 million (dollar_amount) — Term loan facility amount
- December 5, 2029 (date) — Maturity date of credit facilities
- $300 million (dollar_amount) — Senior secured notes principal amount
- December 15, 2031 (date) — Maturity date of senior secured notes
FAQ
What is the purpose of the new credit agreement and senior secured notes?
The new credit agreement provides for a $1.2 billion revolving credit facility and a $300 million term loan facility, while the senior secured note purchase agreement is for $300 million in aggregate principal amount of senior secured notes. These are intended to amend and restate existing credit facilities and provide financing.
When do the new credit facilities mature?
The new revolving credit facility and term loan facility mature on December 5, 2029.
When do the new senior secured notes mature?
The new senior secured notes mature on December 15, 2031.
What are the aggregate principal amounts of the new debt facilities?
The aggregate principal amounts are $1.2 billion for the revolving credit facility, $300 million for the term loan facility, and $300 million for the senior secured notes, totaling $1.8 billion.
Which entities are involved in these new financing agreements?
Ferrellgas Partners L.P. and its subsidiaries are involved in entering into the new credit agreement and the senior secured note purchase agreement.
Filing Stats: 1,261 words · 5 min read · ~4 pages · Grade level 10.6 · Accepted 2024-12-10 08:35:47
Filing Documents
- fgp-20241205x8k.htm (8-K) — 115KB
- fgp-20241205xex10d1.htm (EX-10.1) — 100KB
- fgp-20241205xex10d2.htm (EX-10.2) — 1474KB
- fgp-20241205xex10d3.htm (EX-10.3) — 40KB
- 0001558370-24-016109.txt ( ) — 2175KB
- fgp-20241205.xsd (EX-101.SCH) — 5KB
- fgp-20241205_def.xml (EX-101.DEF) — 12KB
- fgp-20241205_lab.xml (EX-101.LAB) — 18KB
- fgp-20241205_pre.xml (EX-101.PRE) — 12KB
- fgp-20241205x8k_htm.xml (XML) — 19KB
01 Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement. Ferrellgas, L.P. (the "Company") previously entered into the Credit Agreement dated as of March 30, 2021, as thereby amended from time to time (as amended, the "Credit Agreement"), among the Company, Ferrellgas, Inc., the general partner of the Company (the "General Partner"), the subsidiaries of the Company party thereto as guarantors (the "Subsidiary Guarantors"), JPMorgan Chase Bank, N.A., as administrative agent and collateral agent (the "Agent"), and the lenders and issuing lenders party thereto from time to time. On December 5, 2024, the Company entered into the Fifth Amendment to Credit Agreement (the "Fifth Amendment") among the Company, the General Partner, the Subsidiary Guarantors party thereto, the Agent and certain lenders and issuing lenders party thereto. Pursuant to the Fifth Amendment, the revolving commitments of the continuing lenders party to the Fifth Amendment are extended from the earlier of (i) March 30, 2025 to December 31, 2025, and (ii) the date that is 91 days prior to the maturity date (as may be extended) of the 5.375% Senior Notes due April 1, 2026 (the "2026 Notes") (to the extent any such notes are outstanding as of such date). In addition, the Fifth Amendment includes modifications to the applicable margin with respect to base rate loans and benchmark loans, the calculation of consolidated total debt and consolidated total secured debt, restrictions on permitted indebtedness, the use of proceeds and restricted payment provisions, and the event of default provisions. The foregoing descriptions of the Fifth Amendment are only summaries and are qualified in their entirety by reference to the Fifth Amendment, a copy of which is filed with this Current Report on Form 8-K as Exhibit 10.1. Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. Ferrellgas, L.P. (the "Company") previously entered into the Cr
01 Fi nancial Statements and Exhibits
Item 9.01 Fi nancial Statements and Exhibits (d) Exhibits. Exhibit No. Description 10.1 Fifth Amendment to Credit Agreement, dated as of December 5, 2024, among Ferrellgas, L.P., Ferrellgas, Inc., certain subsidiaries of Ferrellgas, L.P., as guarantors, JPMorgan Chase Bank, N.A., as administrative agent and collateral agent, and certain lenders and issuing lenders party thereto 10.2 Exhibit A to the Fifth Amendment to Credit Agreement – Credit Agreement # 10.3 Exhibit B to the Fifth Amendment to Credit Agreement – Amended Schedules 104 Cover Page Interactive Data File (embedded within the Inline XBRL document). # Portions of this exhibit (indicated by asterisks) have been redacted in compliance with Regulation S-K Item 601(b)(10)(iv).
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: December 10, 2024 By: /s/ Michael E. Cole Chief Financial Officer and Treasurer (Principal Financial and Accounting Officer) FERRELLGAS PARTNERS FINANCE CORP. Date: December 10, 2024 By: /s/ Michael E. Cole Chief Financial Officer, Treasurer, and Sole Director (Principal Financial and Accounting Officer) FERRELLGAS, L.P. By: Ferrellgas, Inc., its general partner Date: December 10, 2024 By: /s/ Michael E. Cole Chief Financial Officer and Treasurer (Principal Financial and Accounting Officer) FERRELLGAS FINANCE CORP. Date: December 10, 2024 By: /s/ Michael E. Cole Chief Financial Officer, Treasurer, and Sole Director (Principal Financial and Accounting Officer)