Suburban plans $225 million draw for exchange offers, acquisition

By Marisa Wong

Madison, Wis., July 30 - Suburban Propane Partners, LP said it expects to draw $225 million on its $250 million senior secured 364-day incremental term loan facility.

The draw will be used, together with cash on hand, to fund the exchange offers 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. and the partnership's acquisition of Inergy's retail propane operations.

As recently announced, the exchange offers are scheduled to expire at 12:01 a.m. ET on Aug. 1. The offers were extended to coincide with the closing of the acquisition.

Suburban Propane said it intends to repay the borrowings with an equity financing in the future, subject to market conditions.

The company entered into a commitment letter providing the 364-day facility, along with an increase to its existing revolving credit facility to $400 million from $250 million, on April 25.

The retail marketer and distributor of propane, fuel oil and refined fuels is based in Whippany, N.J.

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