Ugi Corp /pa/ (UGI) · Nov 2, 2026 · New debt
$300M conversion facility — $700M core revolver plus $300M note-conversion facility
UGI’s credit facility amendment adds conversion liquidity for its 2028 notes, raises the main revolver, and extends key maturities.
UGI is a diversified gas and utility company managing a still-levered balance sheet while funding utility investment and stabilizing AmeriGas. Its available liquidity was about $2.1 billion and net leverage was 3.7x as of March 31, 2026; by June 30, 2026, reported corporate leverage had risen to 3.8x.
The amendment materially improves financing flexibility ahead of the 2028 note maturity. UGI raises its core revolving commitment from $475 million to $700 million and adds a separate $300 million revolver whose proceeds can be used only for cash consideration tied to conversion of its $700 million of 5.00% convertible notes due June 2028. The filing says the new facility is a separate class of commitments and loans secured by the existing collateral.
| Current | Compared with | |
|---|---|---|
| Core revolving commitment (Revolving Commitments) | $700M | $475M |
| Note-conversion revolver (Schedule 2.01A) | $300M | New |
| Core revolver maturity (Revolving Maturity Date) | March 31, 2030 | October 11, 2028 |
| Term loan maturity (Term Maturity Date) | March 31, 2030 | October 11, 2027 |
| 2028 convertible notes (Definitions) | $700M | 5.00%, due June 2028 |
The main maturity wall is pushed out, not eliminated. The core revolver and $400 million term loan now run to March 31, 2030, giving UGI more time to refinance or repay debt rather than face a concentrated 2027–2028 funding need.
The new $300 million facility is targeted liquidity, not fresh operating capital. It is designed specifically for a cash settlement if noteholders convert, and it can initially run only to June 30, 2027, with an option to term out outstanding borrowings to June 30, 2028. That makes the amendment partly defensive: UGI is better prepared for conversion pressure, but the filing does not remove the underlying $700 million obligation or disclose that conversion has occurred.
Lender support is the constructive signal, while the structure still flags a refinancing task. The amendment increases capacity, extends maturities and keeps the existing liens in place, while the company represents that no Default or Event of Default is continuing and that it remains solvent. 〔0〕 The market already knew the $300 million conversion facility was scheduled to expire around August 2026, so extending it is partly a confirmation; the larger revolver and longer maturities are the more meaningful new information.
Bottom line: This strengthens UGI’s liquidity runway and reduces near-term refinancing pressure, but it is a financing bridge around the 2028 notes—not a reduction in leverage or debt. The business story improves modestly because the company has more time and committed capacity to manage that maturity.
2028 note conversion or refinancing activity
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