AmeriGas Bonds Drop After Earnings Fall on Slower Propane Sales
AmeriGas Partners LP (APU)’s bonds dropped after the largest propane distributor in the U.S. reported that its quarterly earnings declined 43 percent.
The company’s $1 billion of 7 percent notes due in May 2022 fell 1.6 cents at 10:04 a.m. in New York to 100 cents on the dollar, the price at which they were issued on Jan. 5, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. AmeriGas’s stock fell 0.4 percent to $43.46 at 11:07 a.m.
AmeriGas earned $42.5 million in the quarter ended Dec. 31, down from $74.9 million in the similar period of 2010, as it sold less propane due to warmer weather, the King of Prussia, Pennsylvania-based company said in a statement today. It issued $1.55 billion of eight- and 10-year notes this month.
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