New Issue: Ferrellgas prices downsized $200 million issue of 6¾% notes at 85.00 to yield 10.267%

By Paul A. Harris

St. Louis, July 30 - Ferrellgas, LP priced a downsized $200 million issue of notes mirroring its 6¾% senior notes due May 1, 2014 at 85.00 to yield 10.267% on Wednesday, according to an informed source.

The issue of mirror notes (Ba3/B+) was downsized from $250 million but priced at the high end of the $175 million to $200 million range specified earlier on Wednesday.

The issue was priced on top of the price talk, which had specified both the 85.00 issue price and the 10.267% yield.

Banc of America Securities LLC and J.P. Morgan Securities Inc. were joint bookrunners for the notes, which were placed via Rule 144A with registration rights and via Regulation S.

Proceeds will be used to reduce bank debt.

The original $250 million of notes priced at 99.637 to yield 6.8% in April 2004.

Ferrellgas is an Overland Park, Kan.-based distributor of propane and related equipment.

Issuer:	Ferrellgas, LP
Amount:	$200 million, decreased from $250 million
Maturity:	May 1, 2014
Security description:	Notes mirroring the 6¾% senior notes due May 1, 2014
Bookrunners:	Banc of America Securities LLC, J.P. Morgan Securities Inc.
Co-managers:	BNP Paribas, Credit Suisse, Deutsche Bank Securities, Fifth Third, SG Corporate & Investment Banking, Wells Fargo Securities
Coupon:	6¾%
Price:	85.00
Yield:	10.267%
Spread:	681 bps
Call features:	Callable after May 1, 2009 at 103.375, 102.25, 101.125, par on or after May 1, 2012
Trade date:	July 30
Settlement date:	Aug. 4, with accrued interest
Ratings:	Moody's: Ba3
	Standard & Poor's: B+
Distribution:	Rule 144A with registration rights/Regulation S
Price talk:	85.00 to yield 10.267%

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