UGI Corporation (NYSE: UGI) announced that its subsidiary UGI International, LLC intends to offer €300 million in senior notes to qualified institutional buyers and non-U.S. persons, according to a company statement.

The notes will be guaranteed by certain subsidiaries of UGI International that currently guarantee the company's existing €300 million term loan facility and €500 million revolving credit facility. UGI Corporation will not guarantee the notes.

UGI International plans to use the proceeds to repay short-term borrowings under its revolving credit facility, pay down other outstanding amounts under the facility, partially prepay its term loan, and cover related fees and expenses. The remaining funds will support general corporate purposes.

Part of the revolving credit facility borrowings were associated with a dividend payment to UGI Corporation, which was then contributed to AmeriGas Partners, L.P., a wholly owned subsidiary. UGI International expects AmeriGas to use a portion of these funds to repay an intercompany loan.

The notes offering is not contingent on AmeriGas repaying the intercompany loan. If UGI International does not receive the expected repayment amounts, the company would reduce its intended repayments under the revolving credit facility or term loan accordingly.

The offering remains subject to market conditions. The notes will not be registered under the U.S. Securities Act of 1933 and may only be sold pursuant to exemptions from registration requirements.

UGI Corporation distributes and markets energy products and services in the United States and Europe through subsidiaries that provide natural gas transmission, electric generation, propane distribution, and energy marketing services.