Ferrellgas Raising $700 Million Via Notes

Coming off a year when revenues fell 18.75 percent, Ferrellgas, L.P. has announced two offers for a combined $700 million in senior secured first-lien notes that will earn 10 percent through their 2025 maturation dates.

Last week, the nation’s second-largest propane dealer announced a $575 million offer, then followed that up five days later with a pitch to institutional investors for $125 million. Proceeds from the add-on offer will go toward general business uses, the company said. 

That would help offset a drop in revenues to $1.69 billion last year, from $2.07 billion the year before. The company’s stock price has been hammered over the past three  years, falling from a high of $20.47 a share in the summer of 2016 to 32 cents in over-the-counter trading as of Friday’s close.

Both instruments will have the same terms, except for the initial issue price, and will be issued and treated as a single class of debt securities,, the firm said in a news release. 

The add-on package will not be registered under the Securities Act of 1933, or any state securities laws, and are being offered and sold only to qualified institutional buyers, as defined by federal securities law.