AmeriGas units fall as shareholder boosts offering

NEW YORK (AP) -- AmeriGas Partners LP's common units tumbled Tuesday after the propane company said that its largest unit holder had boosted the size of its discounted offering of AmeriGas units.

THE SPARK: An affiliate of Energy Transfer Partners LP, which owns about 25.6 million, or 32 percent, of AmeriGas' common units, now plans to sell 7.5 million units in an underwritten public offering. It previously planned to sell 6 million units.

THE BIG PICTURE: The units will be sold for $47.60 each, a 4.4 percent discount to the Valley Forge, Pa.-based company's closing unit price of $49.79 on Monday.

In addition, the offering's underwriters have an option to buy up to 1.1 million additional common units at the public offering price, less the underwriting discount. The offering is set to close on Friday. AmeriGas will not receive any of the proceeds.

Energy Transfer Partners acquired the units in 2011 when it sold its propane operations to AmeriGas for $2.9 billion.

As part of the deal, it received $1.46 billion in cash and $1.32 billion in units, which gave it a 34 percent stake in AmeriGas. It was required to keep the units until 2013.

THE UNITS: Down $2.84, or 5.7 percent, to $46.95 in afternoon trading Tuesday. Over the past year, AmeriGas units have traded between $37.63 and $50.45.