UGI Subsidiary Mountaineer Gas Secures $70 Million in Senior Notes Financing
UGI Corporation announced that its wholly owned subsidiary, Mountaineer Gas Company, has entered into a private placement agreement to issue $70 million in senior unsecured notes.
The placement consists of:
$50 million in 6.11% Senior Notes, Series F, maturing in June 2035
$20 million in 6.21% Senior Notes, Series G, maturing in June 2037
The notes will bear interest payable semiannually and rank pari passu with Mountaineer’s existing unsecured debt. The proceeds are designated for refinancing outstanding debt and general corporate purposes.
Mountaineer retains the option to call the notes in whole or in part, either with a make-whole premium or at par following a defined no-premium call period. A change in control of Mountaineer—such as UGI ceasing to own at least 51%—could trigger a mandatory prepayment option for investors.
The agreement includes financial covenants such as:
Maximum debt-to-capitalization ratio of 65%
EBITDA-to-interest coverage of at least 2.00x
Minimum tangible net worth of $70 million
The notes are unsecured and are not registered under the Securities Act, relying on a private placement exemption. UGI emphasized that these terms support its ongoing financial flexibility and long-term capital strategy.
