Loan & DebtMay 11, 2026, 08:07 AM
UGI's AmeriGas to Offer $500M Notes, Tender for $687M Debt
AI Summary
AmeriGas Partners and AmeriGas Finance Corp., subsidiaries of UGI Corporation, commenced a private offering of $500 million in senior notes due 2031. Concurrently, they launched tender offers to repurchase any and all of their 5.750% Senior Notes due 2027 and up to $175 million of their 9.375% Senior Notes due 2028. The proceeds from the new notes, along with a $300 million equity contribution and cash on hand, will be used to fund these repurchases, redeem any remaining 2027 Notes, and repay a $150 million intercompany loan, significantly improving the company's debt maturity profile and leverage.
Key Highlights
- AmeriGas commenced a private offering of $500 million in senior notes due 2031.
- Launched tender offers to purchase all 5.750% Senior Notes due 2027 (approx. $512M outstanding).
- Launched tender offers to purchase up to $175 million of 9.375% Senior Notes due 2028.
- The transaction includes a $300 million cash equity contribution from UGI International.
- Proceeds will repay $150 million outstanding intercompany loan from UGI International.
- Pro forma total debt is expected to decrease from $1,693 million to $1,350 million.
- Pro forma Total Net Debt / LTM Adj. EBITDA is expected to improve from 4.7x to 3.8x.