New Issue: Suburban Propane prices $250 million 10-year notes at par to yield 5¾%

By Paul A. Harris

Portland, Ore., Feb. 10 – Suburban Propane Partners, LP and Suburban Energy Finance Corp. priced a $250 million issue of 10-year senior notes (Ba3/BB-) at par to yield 5¾% on Tuesday, according to a syndicate source.

The yield printed on top of yield talk.

Wells Fargo Securities LLC was the left bookrunner. BofA Merrill Lynch, Citigroup Global Markets, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and RBS Securities were joint bookrunners.

The Whippany, N.J.-based master limited partnership plans to use the proceeds to repurchase its 7 3/8% senior notes due 2020.

Suburban Propane Partners supplies propane, fuel oil and related products and services and markets natural gas and electricity.

Issuer:	Suburban Propane Partners, LP and Suburban Energy Finance Corp.
Amount:	$250 million
Maturity:	March 1, 2025
Securities:	Senior notes
Left bookrunner: Wells Fargo Securities LLC
Joint bookrunners:	BofA Merrill Lynch, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, RBS Securities Inc.
Coupon:	5¾%
Price:	Par
Yield:	5¾%
Spread:	375 bps
Call:	Make-whole call at Treasuries plus 50 bps until March 1, 2020, then at 102.875, 101.917, 100.958, par
Equity clawback:	For up to 35% at 105.75 until March 1, 2018
Trade date:	Feb. 10
Settlement date:	Feb. 25
Ratings:	Moody’s: Ba3
	Standard & Poor’s: BB-
Distribution:	SEC registered
Price talk:	5¾% area
Marketing:	Quick to market

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