UGI subsidiary revises credit agreement terms

UGI Corp (NYSE: NYSE:UGI) and its indirect subsidiary, AmeriGas Propane, L.P., has amended its credit agreement, according to a recent SEC filing. The modification, effective February 14, 2025, alters the minimum liquidity covenant ahead of the maturity of its 2025 Senior Notes. The revision includes cash held in U.S. accounts of AmeriGas Partners, L.P. in the liquidity calculation starting 91 days before the earliest maturity date of the notes. According to InvestingPro data, UGI maintains a healthy financial position with a "GOOD" overall financial health score.

This change, detailed in the Second Amendment to Revolving Credit and Security Agreement, involves AmeriGas Propane, the lenders, and PNC Bank, National Association as the agent. The amendment aims to adjust the financial covenants to better reflect the company’s liquidity position.

The original credit agreement dates back to August 2, 2024, and this latest amendment forms part of the company’s ongoing financial management. The full text of the amendment has been filed with the SEC and is incorporated by reference into the 8-K report.

UGI Corporation, based in King of Prussia, PA, operates within the energy sector, providing gas and other services. The company’s common stock is traded on the New York Stock Exchange under the ticker UGI.

This financial maneuver is part of UGI’s broader strategy to manage its capital structure and ensure financial flexibility. The SEC filing, dated February 20, 2025, provides the necessary details for investors and stakeholders to understand the implications of the revised credit terms.

The information reported here is based on a press release statement.

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