UGI Corporation to Offer $600M in Convertible Senior Notes

UGI Corporation (NYSE: UGI) has announced its intention to offer $600,000,000 aggregate principal amount of convertible senior notes due 2028 in a private offering to qualified institutional buyers. The company also expects to grant the initial purchasers of the notes an option to purchase up to an additional $90,000,000 principal amount of notes.

The notes will be senior, unsecured obligations of UGI, will accrue interest payable semi-annually in arrears, and will mature on June 1, 2028. Noteholders will have the right to convert their notes in certain circumstances and during specified periods, and UGI will settle conversions in cash and, if applicable, shares of its common stock.

The notes will not be redeemable at UGI’s election before maturity. If certain corporate events that constitute a “fundamental change” occur, then noteholders may require UGI to repurchase their notes for cash at a price equal to the principal amount of the notes to be repurchased, plus accrued and unpaid interest.

The interest rate, initial conversion rate, and other terms of the notes will be determined at the pricing of the offering. UGI intends to use the net proceeds from the offering to refinance existing indebtedness, including under UGI’s senior credit facility, and for general corporate purposes.

UGI Corporation is a distributor and marketer of energy products and services in the US and Europe. The company provides natural gas transmission and distribution, electric generation and distribution, midstream services, propane distribution, renewable natural gas generation, distribution and marketing, and energy marketing services.

This press release does not constitute an offer to sell, or the solicitation of an offer to buy, the notes or any shares of common stock issuable upon conversion of the notes, nor will there be any sale of the notes or any such shares, in any state or other jurisdiction in which such offer, sale, or solicitation would be unlawful. As a result of these announcements, the company's shares have moved -7.2% on the market, and are now trading at a price of $22.8. Check out the company's full 8-K submission here.

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