Moody's rates Suburban Propane notes B1

Moody's Investors Service said it assigned a B1 rating to Suburban Propane Partners, LP's upcoming senior unsecured notes due 2031.

The notes are rated B1 or one notch below the Ba3 corporate family rating, reflecting their subordination to the unrated secured $500 million revolver due 2025, Moody’s said. Suburban's other ratings and stable outlook remain unchanged.

The proceeds along with borrowings under its revolver and cash on hand, will be primarily used to refinance its $525 million of 5½% senior notes due 2024 and $250 million of 5¾% senior notes due 2025.

"The senior notes issuance will materially extend Suburban's maturity profile," said Arvinder Saluja, a Moody's vice president, in a press release. "Importantly, it will also move a portion of its debt burden to revolver borrowings, making It easier for it to repay them and reduce its gross debt over time using the free cash flow Suburban will generate."

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