AmeriGas Partners LP received valid tenders totaling $799.1 million by the early participation cutoff for its $500 million tender offer to exchange cash for senior notes.
Due to the oversubscription, AmeriGas Partners accepted tendered 7.00% senior notes due 2022 for purchase on a 62.7% prorated basis, according to a Dec. 28 news release. The cash consideration of $1,057.50 for each $1,000 of notes, plus interest, is expected to be paid Dec. 28.
Concurrently, AmeriGas Partners closed an offering of $700 million of 5.500% senior notes due 2025. The net proceeds will be used to pay the purchase price of the notes accepted in the tender offer, while any excess proceeds would go to debt repayment and general business purposes.
Wells Fargo Securities LLC acted as the dealer manager in the tender offer and, along with J.P. Morgan Securities LLC, served as book-running manager for the notes offering.