Moody’s assigns AmeriGas notes B1

Moody’s Investors Service said it assigned a B1 rating to AmeriGas Partners, LP's planned $500 million of senior unsecured notes due 2028.

AmeriGas' other ratings, including the Ba3 corporate family rating, Ba3-PD probability of default rating, SGL-3 speculative grade liquidity rating and negative outlook remain unchanged.

“The notes are not guaranteed by AmeriGas Propane, LP, the principal operating subsidiary. Consequently, the notes are structurally subordinated to AmeriGas Propane, LP's $600 million senior unsecured revolver which results in the notes being rated one notch below the Ba3 CFR,” Moody’s said in a press release.

AmeriGas will use the notes to refinance its $675 million of senior unsecured notes due 2024, a $150 million capital contribution from AmeriGas parent UGI Corp., balance sheet cash and revolver borrowings. As part of the transaction, AmeriGas is making a tender offer for its senior unsecured notes due 2024 at about101% of par.

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