OVERLAND PARK, Kan., Aug. 24, 2018 (GLOBE NEWSWIRE) -- Ferrellgas Partners, L.P. (NYSE:FGP) (“Ferrellgas” or the “Company”) today announced the declaration of its fourth quarter cash distribution of $0.10 per partnership common unit. The distribution is payable on September 14, 2018 to common unitholders of record as of September 7, 2018. The distribution covers the period from May 1, 2018, to July 31, 2018, the Company’s fourth quarter of fiscal 2018.
In past quarterly and annual filings with the Securities and Exchange Commission, the Company has included disclosures and risk factors related to its unitholder distributions. In order to make unitholder distributions, the Company must be in compliance with a consolidated fixed charge coverage ratio (“FCCR”) condition under the indenture (the “Indenture”) governing the Company’s senior unsecured notes due 2020 (the “MLP Notes”). If the FCCR is less than 1.75:1.00, the Indenture allows for unitholder distributions to continue in an aggregate amount up to $50.0 million over a trailing 16 quarter period. After giving effect to the fourth fiscal quarter 2018 unitholder distribution announced today, there will be no remaining availability under this $50.0 million basket. The Company is actively exploring all available options with respect to future unitholder distributions, but in the event that the Company is unable to find a solution addressing the restricted payments conditions of the Indenture, the Company will not be able to make common unitholder distributions beginning with the first fiscal quarter 2019 until its FCCR is greater than 1.75:1.00.
As previously disclosed, the Company has recently completed the sale of certain assets and the accelerated collection of certain notes receivable due to the Company generating approximately $110 million of aggregate cash proceeds. These proceeds are available for investment in the Company’s growth initiatives and/or the reduction in the Company’s indebtedness, in each case subject to limitations and conditions contained in the documents governing certain of the Company’s notes and credit facilities.
About Ferrellgas
Ferrellgas Partners, L.P., through its operating partnership, Ferrellgas, L.P., and subsidiaries, serves propane customers in all 50 states, the District of Columbia, and Puerto Rico. Ferrellgas employees indirectly own 22.8 million common units of the partnership, through an employee stock ownership plan. Ferrellgas Partners, L.P. filed a Form 10-K with the Securities and Exchange Commission on September 28, 2017 and its most recent Form 10-Q on June 7, 2018. Investors can request a hard copy of these filings free of charge and obtain more information about the partnership online at www.ferrellgas.com. In accordance with Treasury Regulation 1.1446-4(d), nominees are hereby notified they are responsible for withholding 35% of this distribution from foreign investors as required under Section 1446 of the Internal Revenue Code.
Contacts
Jim Saladin, Media Relations – jimsaladin@ferrellgas.com, 913-661-1833
Bill Ruisinger, Investor Relations – billruisinger@ferrellgas.com, 816-792-7914