UGI Corporation Extends Receivables Purchase Agreement with Energy Services Funding Corporation

UGI Corporation (NYSE:UGI) has announced an extension to its Receivables Purchase Agreement (RPA) with Energy Services Funding Corporation. The agreement, which was amended on October 18, 2024, involves UGI Energy Services, LLC (UGIES), a Pennsylvania limited liability company and an indirect, wholly owned subsidiary of UGI Corporation, and Energy Services Funding Corporation, a wholly owned special purpose subsidiary of UGIES.

Key highlights of the recent Amendment No. 25 to the RPA include extending the Facility Termination Date from October 18, 2024, to October 17, 2025. Additionally, the definition of Purchase Limit has been adjusted to $150,000,000 between October 18, 2024, and May 1, 2025, and to $75,000,000 thereafter. Furthermore, the BSBY interest rate has been replaced with a SOFR-based interest rate. The Amendment allows UGIES and ESFC to request an increase in the Purchase Limit by $50,000,000, subject to the discretion of PNC Bank, National Association, and PNC Capital Markets LLC.

Under the RPA, UGIES transfers its trade accounts receivable to ESFC without recourse. ESFC, in the past and potentially in the future, may sell an undivided interest in some or all of the receivables to PNC. The obligations under the RPA and Purchase and Sale Agreement (PSA) are secured by all receivables under the pool, related security, collections, and lock-box accounts.

The amended RPA’s scheduled termination date is October 17, 2025. It includes customary indemnifications, representations, warranties, and covenants. The PSA outlines termination events, including nonpayment, incorrect representations or warranties, covenant violations, and changes of control.

PNC or its affiliates have historically provided loans, financial services, and acted in agency roles for UGI or its affiliates. Affiliated entities have also offered investment banking and advisory services for which they received compensation.

The details of the Amendment have been filed as Exhibit 10.1 to the Current Report on Form 8-K and are available for reference.

This report provides an overview of UGI Corporation’s recent extension of its RPA with Energy Services Funding Corporation, offering insights into the agreement’s terms and implications moving forward.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read UGI’s 8K filing here.

About UGI

UGI Corporation, together with its subsidiaries, distributes, stores, transports, and markets energy products and related services in the United States and internationally. The company operates through four segments: AmeriGas Propane, UGI International, Midstream & Marketing, and UGI Utilities. It distributes propane to approximately 1.3 million residential, commercial/industrial, motor fuel, agricultural, and wholesale customers through 1,400 propane distribution locations.