UGI International places €400M of 8-year bonds at 2.5%; terms

European natural-gas producer UGI International LLC (UGII) has placed and allocated a €400 million offering of eight-year (non-call three-year) unsecured notes via lead bookrunner BNP Paribas (B&D). The bonds priced at par to yield 2.50%, versus price guidance of 2.50%-2.625%.

BNP Paribas, Credit Agricole and HSBC are global coordinators, while ING, Mediobanca, Natixis, Societe Generale, Barclays and RBI are additional joint bookrunners.

Proceeds from the offering, the issuer's second bond transaction, will refinance its existing €350 million of 3.25% notes due 2025. Those bonds, which were placed in October 2018, are callable this year at par plus 50% coupon, and have been trading to call since mid-September.

Ratings are Ba1 and BB+ from Moody's and Fitch, with stable outlooks from both rating agencies. The notes will rank pari passu to the firm's existing €300 million term loan and €300 million unsecured multicurrency revolving credit facility, both due 2023.

Additional proceeds will be used for general corporate purposes, which may include the payment of a dividend to the firm's parent company, New York-listed UGI Corp.

Terms: