Ferrellgas Partners Announces Extension of Upsized Accounts Receivable Securitization Facility
May 14 2018 - 5:30PM
Ferrellgas, L.P., the operating partnership of Ferrellgas Partners,
L.P. (NYSE:FGP) (“Ferrellgas”), announced today an agreement with a
purchaser group led by Wells Fargo Bank, N.A., and including Fifth
Third Bank, N.A. and PNC Bank, N. A., which extends the operating
partnership’s accounts receivable securitization facility.
In addition to extending the facility’s maturity date by three
years, other key amendments include the upsizing of the facility
from a maximum capacity of $225 million to $250 million at a
discount rate of LIBOR plus 200 basis points. It also now
includes provisions for the issuance of letters of credit with a
$50 million sublimit. The facility continues to have
provisions where maximum purchase levels are reduced during periods
of the year when working capital requirements are lower to
efficiently reduce unused capacity fees.
“Our accounts receivable securitization facility is an important
complement to our new five-year $575 million secured credit
facility that we announced one week ago,” said James E. Ferrell,
Interim Chief Executive Officer and President of Ferrellgas. “It
provides us with a low cost of capital as well as
increased availability when our working capital needs peak
during the colder months of the year.” Ferrell added, “It is
a positive sign as to the direction of our company by closing two
major working capital facilities in such a short period of
time. We are now even better positioned for the future with
substantial liquidity to fund our operations and capitalize on the
growth opportunities we are seeing in our business.”
Bracewell, LLP served as legal advisor to Ferrellgas. Barnes
& Thornburg LLP served as legal advisor to the lending
group.
About FerrellgasFerrellgas Partners, L.P.,
through its operating partnership, Ferrellgas, L.P., and
subsidiaries, serves propane customers in all 50 states, the
District of Columbia, and Puerto Rico, and provides midstream
services to major energy companies in the United States. Ferrellgas
employees indirectly own 22.8 million common units of the
partnership, through an employee stock ownership plan. Ferrellgas
Partners, L.P. filed a Form 10-K with the Securities and Exchange
Commission on September 28, 2017. Investors can request a hard copy
of this filing free of charge and obtain more information about the
partnership online at www.ferrellgas.com.
Forward Looking Statements Statements in this
release concerning expectations for the future are forward-looking
statements. A variety of known and unknown risks, uncertainties and
other factors could cause results, performance, and expectations to
differ materially from anticipated results, performance, and
expectations. These risks, uncertainties, and other factors include
those discussed in the Form 10-K of Ferrellgas Partners, L.P.,
Ferrellgas Partners Finance Corp., Ferrellgas, L.P., and Ferrellgas
Finance Corp. for the fiscal year ended July 31, 2017, the
Form 10-Q of these entities for the fiscal quarter ended
January 31, 2018 and in other documents filed from time to
time by these entities with the Securities and Exchange
Commission.
Contacts
Jim Saladin, Media Relations – jimsaladin@ferrellgas.com,
913-661-1833 Bill Ruisinger, Investor Relations –
billruisinger@ferrellgas.com, 816-792-7914
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