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UGI Corporation’s indirect, wholly-owned subsidiaries, AmeriGas Partners, L.P. and AmeriGas Finance Corp., have directed U.S. Bank Trust Company, National Association, as trustee, to redeem all outstanding 5.500% Senior Notes due 2025. The redemption is set for Monday, March 7, 2025, at a redemption price of 100% of the principal amount, plus accrued and unpaid interest up to, but not including, the redemption date. According to InvestingPro data, UGI maintains a solid financial position with an EBITDA of $1.64 billion in the last twelve months and has demonstrated strong shareholder returns with 32 consecutive years of dividend increases.
The 2025 Notes, which were issued under an indenture dated June 27, 2016, will cease to accrue interest after the redemption date. Consequently, no interest will be paid on the upcoming May 20, 2025, interest payment date. This action is in accordance with the terms outlined in the Base Indenture and the Second Supplemental Indenture, which together form the 2025 Notes Indenture. The company currently offers a dividend yield of 4.83% and has maintained dividend payments for 54 consecutive years, reflecting its commitment to shareholder returns.
The decision to redeem these notes was reported in a current report filed with the Securities and Exchange Commission on February 5, 2025. This move is part of UGI Corporation’s financial management strategy. UGI Corporation, based in King of Prussia, Pennsylvania, operates in the gas and other services combined industry and trades on the New York Stock Exchange under the ticker symbol (NYSE:UGI). The stock has shown strong momentum with a 33.6% return over the past six months, and InvestingPro analysis suggests the stock is currently undervalued. For comprehensive insights and detailed financial analysis, investors can access the full Pro Research Report, available exclusively to InvestingPro subscribers.
Investors holding the 2025 Notes should note that after the redemption date, the notes will no longer be in circulation and will not accrue further interest. This announcement does not constitute a notice of redemption for the 2025 Notes, but it does indicate the company’s intent and provides the key details for the note holders’ consideration. This information is based on a press release statement. With a market capitalization of $6.7 billion and analysts forecasting sales growth this year, UGI continues to demonstrate strong market presence and growth potential.
In other recent news, UGI Corporation has been under the spotlight with several notable developments. All ten nominees for UGI’s Board of Directors were elected at the Annual Meeting of Shareholders, highlighting strong shareholder support. The company’s executive compensation plan also received approval, while KPMG LLP was ratified as the independent registered public accounting firm for the fiscal year 2025.
Jefferies and Mizuho (NYSE:MFG) Securities have both shown confidence in UGI, raising their price targets for the company. Jefferies increased the price target to $35, citing the anticipation of a robust start to the year, while Mizuho Securities adjusted its price target to $33, reflecting optimism about the company’s future performance.
UGI Corporation also announced the appointment of Michael Sharp (OTC:SHCAY) as President of AmeriGas Propane. Sharp’s leadership abilities and extensive experience in commodity management and operations were emphasized in the announcement. In addition, Jefferies has maintained a positive outlook on UGI, raising the price target to $33 from $28, while keeping a Buy rating on the stock, underlining UGI’s confidence in its turnaround strategy.
These developments reflect the ongoing changes and strategic direction within UGI Corporation, with an emphasis on improving performance and enhancing shareholder value.
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