Ferrellgas Announces Eddystone Settlement, Successfully Strengthens its Financial Certainty for the Future
LIBERTY, Mo., Jan. 17, 2025 (GLOBE NEWSWIRE) -- Ferrellgas Partners, L.P. (OTC: FGPR) (“Ferrellgas” or the “Company”) announced today it has executed a settlement agreement with Eddystone Rail Company, LLC (“Eddystone”) to resolve numerous litigations dating back to February 2017. The terms of the agreement require Ferrellgas to pay Eddystone $125.0 million in three structured payments ending on or before January 15, 2026. The first payment of $50.0 million was made on January 15, 2025, and the remaining two payments of $37.5 million will be made on or before June 16, 2025, and January 15, 2026, respectively.
The Company is pleased to report that the settlement resolves the $171.6 million judgment that was entered on June 7, 2024, by the U.S. Court for the Eastern District of Pennsylvania and the related appeals. The settlement will be funded with existing cash and liquidity. The $190 million appeal bond Ferrellgas posted to secure the judgment pending its appeal and the associated letters of credit have been released.
The settlement clears the way for the Company to execute on its capital restructuring plans. As previously reported, the Company has retained Moelis & Company LLC to advise the Company on strategies for effectively addressing its capital structure, including upcoming debt maturities, in a manner that maximizes long-term unitholder value.
“Bringing swift closure to this lawsuit and all other related lawsuits is in the best interests of all of our key stakeholders,” Ferrellgas President and Chief Executive Officer Tamria Zertuche said. “We are focused on our future and will continue investing in our infrastructure, growing our market share, and creating opportunities for growth across our strong nationwide network.”
For the past four years Ferrellgas has been focused on transformation and positioning itself as the industry leader. With this chapter closed, the Company will continue its goal of strengthening and simplifying the great Ferrellgas story for its investors.
Forward-Looking Statements
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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. Its Blue Rhino exchange brand is sold at more than 65,000 locations nationwide. Ferrellgas employees indirectly own 1.1 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 27, 2024. Investors can request a hard copy of this filing free of charge and obtain more information about the partnership online at . For more information, follow Ferrellgas on , , , and .
Additional Information
Investors and others should note that we may announce material information using SEC filings, press releases, public conference calls, webcasts, and the Investor Relations page of our website. We may use these channels to distribute material information about the Company and to communicate important information about corporate initiatives and other matters. Information that we may post on our website could be deemed material. Therefore, we encourage investors, the media, our customers, business partners, and others interested in the Company to review the information posted on our website.
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