Ferrellgas Partners, LP (OTCMKTS: FGPR) Losses?

Did Your Advisor Unreasonably Sell You Ferrellgas Partners Notes?

Soreide Law Group is considering possible investor claims against financial advisors who may have unreasonably advised their clients to purchase bonds, notes or other debt securities issued by Ferrellgas Partners, LP (OTCMKTS: FGPR). Evidently, the company’s operating group, Ferrellgas LP, barely avoided disaster last year when it seemingly evidenced events of default on obligations to TPG Specialty Lending. Ferrellgas is one of many companies in the energy sector to sustain massive declines in value since 2016, and problems appear to be getting worse because of Covid 19.

Who Is Ferrellgas Partners?

Ferrellgas Partners, LP is a publicly traded Master Limited Partnership headquartered in Liberty, Missouri. The company–known for its brand Blue Rhino– has apparently been a leader in the propane industry for more than 80 years. The company services individuals and businesses throughout the United States as well as in the District of Columbia and Puerto Rico. Evidently, nearly a quarter of the company's 97 million+ units are owned by employees through an ESOP.

A Company On Shaky Grounds

Late last year, at a time when the company reportedly had approximately $2,200,000,000 in debt and $1,260,000,000 in assets, Ferrellgas seemed unlikely to pay TPG Specialty Lending the $357,000,000 that it would soon owe. In fact, TPG sounded the alarm by alleging that the company technically defaulted. As a result, Ferrellgas auditor, Grant Thornton LLP, questioned the company's viability as a going concern. Eventually, Ferrellgas LP and TPG came to a resolution which included, among other things, increasing the credit facility sub-limit for issuance of letters of credit to $140,000,000, and waiving events of default.
FGPR is worth $0.46 per unit as of the close of business on May 27, 2020, down about 62% from a year ago. Also, on March 11, 2020, the company reported the indefinite suspension of its quarterly cash distribution because of failing to meet the mandatory fix charge coverage ratio contained in senior unsecured notes due in June of 2020. Just recently, in April 2020, Ferrellgas announced that it would be offering up to $700,000,000 in 10% senior secured first lien notes due in 2025.

Advisors Possibly Recommended Unsuitable Ferrellgas Notes

Critically, securities brokers and financial advisors are responsible for ensuring that the investments that they recommend are suitable for investors. This necessitates due diligence by the broker or financial advisor not just on the investor but also on the recommended investments. Moreover, it is incumbent on these financial professionals to disclose risks and other details about recommended investments. It is possible that some brokers and advisors sold unsuitable or misrepresented Ferrellgas notes to conservative investors.

Losses By Investing In Energy Securities Because Of Your Advisor?

Have you experienced losses because of purchasing Ferrellgas securities from your financial advisor? If so, contact Soreide Law Group at (888) 760-6552 and speak with experienced counsel about a possible recovery of your investment losses. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The law firm has recovered millions of dollars for clients who have suffered losses due to misconduct of their advisors and brokers.