Ferrellgas Lands Lending Agreement in Face of Defaults

Ferrellgas, L.P. has reached a lending agreement with TPG Specialty Lending to address “alleged events of default” that occurred under its current credit facility, the propane distributor said.

The $300-million revolving credit facility sub-limit for the issuance of letters of credit was risen from $125 million to $140 million. There was also a change that allows for payments made on the construction of vehicles that deliver propane when those expenses are reimbursed from operating-lease revenues.

Liberty-based Ferrellgas Partners lost $64.3 million over its last fiscal year ended July 31, an improvement from $254.6 million. The company sold 904.8 million gallons of propane during the period, up three percent from 2018’s fiscal year. Margins on propane per gallon were 2.4 percent higher, and Ferrellgas gained more than 25,000 new customers.