Ferrellgas Partners, L.P. Takes Action to Strengthen Financial Position for the Future

Remains Independent, Employee-Owned Company Committed to Serving Customers

Operations to Continue as Usual with Ample Liquidity to Meet Obligations

OVERLAND PARK, Kan., Dec. 11, 2020 (GLOBE NEWSWIRE) -- Ferrellgas Partners, L.P. (OTC:FGPR) (together with its operating partnership, Ferrellgas, L.P., and subsidiaries, “Ferrellgas”) today announced it has entered into an important agreement with a substantial majority of its noteholders that enables Ferrellgas to continue to be an employee-owned enterprise and move forward with a stronger balance sheet.

James E. Ferrell, Chairman of the Ferrellgas Board of Directors, Interim President and Chief Executive Officer, said, “Today, we are announcing great news for Ferrellgas. We have a reached an agreement with a substantial majority of our noteholders that will preserve our almost 100-year-old history and maintain ownership by our nearly 5,000 global employees. This deal will permit us to preserve and grow our enterprise as we continue to sell our products in all fifty U.S. states and Puerto Rico, while remaining a Midwest-based and employee-owned business.”

The Transaction Support Agreement (“TSA”) executed between the Company’s parent master limited partnership, Ferrellgas Partners, L.P. (the “Parent MLP”), Ferrellgas Partners Finance Corp. (“Parent Finance”), and its noteholders will permit Ferrellgas to remain an independent, employee-owned business under current management while restructuring substantially all of its debt. Importantly, the restructuring will have no impact on Ferrellgas’ operations, will not inhibit Ferrellgas’ ability to provide propane to its almost 800,000 customers throughout the United States and Puerto Rico, and will allow its premier Blue Rhino tank exchange business to continue to expand beyond the current 60,000 selling locations.

Ferrellgas will continue to satisfy all its obligations to employees, vendors, suppliers and other partners without interruption. While operations continue as normal, pursuant to the transactions contemplated in the TSA, the debt of the Parent MLP and Parent Finance will be eliminated, approximately $1.5 billion of debt of the operating partnership will be refinanced, and over $1 billion of new capital will be raised by the operating partnership.

According to Mr. Ferrell, “This agreement is an important milestone to allow us to eliminate debt overhang, strengthen our financial position, and partner with our institutional noteholders that recognize the value and growth potential in our enterprise. Importantly, this deal will permit our current management to implement the necessary business plans to grow our enterprise for the benefit of our employee-owners and other stakeholders. All of this will be accomplished without any disruption to our operations.”