Suburban again extends consent date in exchange offer for Inergy notes

By Susanna Moon

Chicago, May 21 - Suburban Propane Partners, LP and Suburban Energy Finance Corp. again extended the consent solicitations for the $1.2 billion principal amount of 7% senior notes due 2018 and 6 7/8% senior notes due 2021 issued by Inergy, LP and Inergy Finance Corp.

The consent deadline is now 5 p.m. ET on May 23, according to an 8-K filing with the Securities and Exchange Commission by Suburban Propane.

The deadline was extended from 5 p.m. ET on May 18 and, before that, from 5 p.m. ET on May 16.

As previously noted, the companies are offering $1 billion principal amount of new 7% senior notes due 2018 and 6 7/8% senior notes due 2021 issued by Suburban Energy plus $200 million in exchange for tendered Inergy notes.

Each new series of notes will have substantially the same terms as the corresponding series of outstanding Inergy notes for which they are being offered in exchange, including coupon, interest payment dates, optional redemption terms and maturity.

The offers are in connection with, and conditioned upon, the acquisition of Inergy's retail propane operations.

Suburban also is soliciting consents to amend the Inergy notes to delete all of the restrictive covenants, modify the covenants regarding mergers and consolidations and eliminate events of default. The amendments require the consent of a majority of holders of the outstanding principal amount of each series of Inergy notes.

Holders who deliver consents by the deadline of will receive a cash payment of $3.75 per $1,000 principal amount.

The exchange offers began on May 3 and will run until 11:59 p.m. ET on May 31. They were announced on April 26.

Holders may no longer withdraw tendered notes.

The completion of the exchange offers is conditioned on the tender of at least $1 billion principal amount of Inergy notes and the Inergy retail propane acquisition.

Suburban Propane said on April 26 that it received a commitment to increase its revolving credit facility to $400 million from $250 million and that it planned on issuing $1 billion of 7% senior notes due 2018 and 6 7/8% senior notes due 2021.

Global Bondholder Services Corp. (866 387-1500 or collect 212 430-3774) is the information agent for the exchange offers.

Inergy is a Kansas City, Mo., master limited partnership with operations that include the retail marketing, sale and distribution of propane. It also operates a natural gas storage business, a liquid petroleum gas storage business, a solution-mining and salt production company and a propane supply logistics, transportation and wholesale marketing business.

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