Suburban Propane starts tender offer and consent solicitation for 2024, 2025 notes

Chicago, May 10 – Suburban Propane Partners, LP and Suburban Energy Finance Corp. started a tender offer and consent solicitation for two series of notes on Monday, according to a press release.

The offer covers any and all of the $525 million outstanding 5½% senior notes due 2024 (Cusip: 864486AH8) and the $250 million 5¾% senior notes due 2025 (Cusip: 864486AJ4).

The company is offering to pay a total consideration of $1,012 per $1,000 note for the 2024 notes, inclusive of a $30 consent payment.

Separately, Suburban is offering to pay $1,020.42 per $1,000 note for the 2025 notes, also inclusive of a $30 consent payment.

In terms of the consent solicitation, the company is seeking to eliminate substantially all of the restrictive covenants, certain events of default and related provisions with respect of the notes and shorten the minimum notice period for redemption to three business days.

Noteholders may not tender notes without delivering consents.

Funding for the offer will come from the proceeds of a new offering of notes that is being talked at $650 million with a 2031 maturity date, together with cash on hand and borrowings under a revolving credit facility.

The consent deadline and the withdrawal deadline are 5 p.m. ET on May 21.

Early settlement is planned for May 24.

The tender offer will expire at 11:59 p.m. ET on June 7.

The company intends to redeem any 2024 notes not tendered after the expiration of the offer.

The company has already issued a conditional notice of redemption for the 2025 notes for any notes not tendered. The notes will be repurchased at 101.917 on June 9.

BofA Securities, Inc. is the dealer manager (debt_advisory@bofa.com, 980 388-3646).

D.F. King & Co., Inc. is the tender agent and information agent (sph@dfking.com, 212 269-5550, 866 745-0273).

Based in Whippany, N.J., Suburban Propane supplies propane, fuel oil and related products and services and markets natural gas and electricity.

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