Ferrellgas Partners, L.P. Announces Amendment to Its Revolving Credit Facility
29 April 2017 - 6:26AM
Ferrellgas Partners, L.P. (NYSE:FGP) today announced that
Ferrellgas, L.P. entered into a sixth amendment to its secured
credit facility. This amendment provides covenant relief by
increasing the facility’s Consolidated Leverage Ratio to 7.75x and
reducing the Consolidated Interest Coverage Ratio to 1.75x through
April 30, 2018. The facility is now ‘right-sized’ at $575 million
compared to the previous $700 million, eliminating $125 million of
excess availability. Currently, the company has $213.6 million
drawn and $123.5 million of letters of credit outstanding under the
credit facility.
Alan C. Heitmann, Senior Vice President and Chief Financial
Officer commented, “We’re pleased to have finalized 12- month
covenant relief in our credit facility.” Mr. Heitmann continued,
“Given the current amount of availability on the credit facility,
the reduction in the size will not negatively affect Ferrellgas’
anticipated working capital or future expansive growth capital
expenditures. The facility is now right sized at $575 million which
will save $625,000 in annual unused fees.”
James E. Ferrell, Interim President and Chief Executive Officer
added “We were required to ask for covenant relief due to the
warmest winter on record. The largest portion of our business
is the sale of propane gas, much of which is used for
heating. Operationally, the company remains strong. We
were pleased that our banks recognized this was not a systemic
problem.”
About Ferrellgas Ferrellgas 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, 2016. Investors can request a
hard copy of this filing free of charge and obtain more information
about the partnership online at www.ferrellgas.com.
Contacts
Jack Herrold, Investor Relations – jackherrold@ferrellgas.com, 913-661-1851
Jim Saladin, Media Relations – jimsaladin@ferrellgas.com, 913-661-1833
Ferrellgas Partners (NYSE:FGP)
Historical Stock Chart
From Mar 2024 to May 2024
Ferrellgas Partners (NYSE:FGP)
Historical Stock Chart
From May 2023 to May 2024
Real-Time news about Ferrellgas Partners LP (New York Stock Exchange): 0 recent articles
More News Articles