Ferrellgas Partners entered into a sixth amendment to its secured credit facility. According to a related 10-K filing, Bank of America served as administrative agent, swing line lender and L/C issuer.

This amendment provides covenant relief by increasing the facility’s consolidated leverage ratio to 7.75x and reducing the consolidated interest coverage ratio to 1.75x through April 30, 2018. The facility is now ‘right-sized’ at $575 million compared to the previous $700 million, eliminating $125 million of excess availability. Currently, the company has $213.6 million drawn and $123.5 million of letters of credit outstanding under the credit facility.

Senior Vice President and Chief Financial Officer Alan C. Heitmann commented, “We’re pleased to have finalized 12-month covenant relief in our credit facility. Given the current amount of availability on the credit facility, the reduction in the size will not negatively affect Ferrellgas’ anticipated working capital or future expansive growth capital expenditures. The facility is now right-sized at $575 million which will save $625,000 in annual unused fees.”

Ferrellgas Partners serves propane customers in all 50 states, the District of Columbia, and Puerto Rico, and provides midstream services to major energy companies in the U.S.