Ferrellgas Partners, L.P. Declares Fourth Quarter Fiscal Year 2018 Cash Distribution
24 August 2018 - 11:00PM
Ferrellgas Partners, L.P. (NYSE:FGP) (“Ferrellgas” or the
“Company”) today announced the declaration of its fourth quarter
cash distribution of $0.10 per partnership common unit. The
distribution is payable on September 14, 2018 to common unitholders
of record as of September 7, 2018. The distribution covers the
period from May 1, 2018, to July 31, 2018, the Company’s fourth
quarter of fiscal 2018.
In past quarterly and annual filings with the Securities and
Exchange Commission, the Company has included disclosures and risk
factors related to its unitholder distributions. In order to
make unitholder distributions, the Company must be in compliance
with a consolidated fixed charge coverage ratio (“FCCR”) condition
under the indenture (the “Indenture”) governing the Company’s
senior unsecured notes due 2020 (the “MLP Notes”). If the
FCCR is less than 1.75:1.00, the Indenture allows for unitholder
distributions to continue in an aggregate amount up to $50.0
million over a trailing 16 quarter period. After giving
effect to the fourth fiscal quarter 2018 unitholder distribution
announced today, there will be no remaining availability under this
$50.0 million basket. The Company is actively exploring all
available options with respect to future unitholder distributions,
but in the event that the Company is unable to find a solution
addressing the restricted payments conditions of the Indenture, the
Company will not be able to make common unitholder distributions
beginning with the first fiscal quarter 2019 until its FCCR is
greater than 1.75:1.00.
As previously disclosed, the Company has recently completed the
sale of certain assets and the accelerated collection of certain
notes receivable due to the Company generating approximately $110
million of aggregate cash proceeds. These proceeds are
available for investment in the Company’s growth initiatives and/or
the reduction in the Company’s indebtedness, in each case subject
to limitations and conditions contained in the documents governing
certain of the Company’s notes and credit facilities.
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. 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 and its most recent Form 10-Q on June 7, 2018.
Investors can request a hard copy of these filings free of charge
and obtain more information about the partnership online at
www.ferrellgas.com. In accordance with Treasury Regulation
1.1446-4(d), nominees are hereby notified they are responsible for
withholding 35% of this distribution from foreign investors as
required under Section 1446 of the Internal Revenue Code.
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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