UGI Corporation (NYSE: UGI) disclosed that its wholly-owned division UGI International, LLC is planning to launch senior notes offering. The company has decided to offer €400,000,000 in aggregate principal amount of senior unsecured notes to the eligible institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended.
The Notes will be guaranteed without any condition by certain subsidiaries of UGI International that ensure UGI International’s obligations under its current €300,000,000 senior unsecured term loan facility and its current €300,000,000 senior unsecured revolving credit facility but will not be guaranteed by the Company.
UGI International anticipates using the net profit of the offering to redeem its €350,000,000 principal amount of senior unsecured notes due 2025 in full. The company is also planning to pay fees and expenses as part of the offering. Moreover, UGI intends to utilize the rest for general business purposes and/or be distributed to the Company. The Notes offering is dependent on certain market conditions.
Furthermore, the Notes will not be listed under the Securities Act, or any state securities laws, and may not be presented or sold in the US without registration, except in accordance with an exclusion from the registration requirements of the Securities Act and applicable state securities laws.
UGI has earned a reputation as a distributor and marketer of energy products and services. Through affiliates, UGI runs natural gas and electric utilities in Pennsylvania, natural gas utilities in West Virginia, delivers LPG both domestically through AmeriGas and internationally through UGI International.