New Issue: Suburban Propane prices $650 million 10-year notes at par to yield 5%

By Paul A. Harris

Portland, Ore., May 10 – Suburban Propane Partners, LP and Suburban Energy Finance Corp. priced a $650 million issue of 10-year senior notes (B1/BB-) at par to yield 5% in a Monday drive-by, according to market sources.

The yield came at the tight end of the 5% to 5 1/8% revised yield talk. Earlier official talk was in the 5¼% area. Initial guidance was in the mid-5% area.

BofA Securities Inc. was the left bookrunner. Joint bookrunners were Wells Fargo Securities LLC, Citizens Capital Markets Inc. and J.P. Morgan Securities LLC.

The Whippany, N.J.-based propane marketer plans to use the proceeds plus a combination of cash on hand and borrowings under its senior secured revolver to refinance its outstanding 5½% senior notes due 2024 and 5¾% senior notes due 2025.

Issuers:	Suburban Propane Partners, LP and Suburban Energy Finance Corp.
Amount:	$650 million
Maturity:	June 1, 2031
Securities:	Senior notes
Left bookrunner:	BofA Securities Inc.
Joint bookrunners:	Wells Fargo Securities LLC, Citizens Capital Markets Inc. and J.P. Morgan Securities LLC
Senior co-managers:	BNP Paribas Securities Corp., Capital One Securities Inc., HSBC Securities (USA) Inc., TD Securities (USA) LLC and Truist Securities Inc.
Co-manager:	Citigroup Global Markets Inc.
Coupon:	5%
Price:	Par
Yield:	5%
Spread:	340 bps
Call protection:	Five years
Trade date:	May 10
Settlement date:	May 24
Ratings:	Moody's: B1
	S&P: BB-
Distribution:	Rule 144A and Regulation S for life
Price talk:	5% to 5 1/8%, revised from 5¼% area
Marketing:	Drive-by

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