Moody’s gives Ba3 to Suburban Propane notes

Moody's Investors Service said it assigned a Ba3 rating to Suburban Propane Partners, LP's proposed $350 million senior notes due 2027.

Proceeds will be used to tender for the existing $346 million 7 3/8% senior notes due 2021 and pay transaction-related fees and expenses.

All existing ratings, including the Ba2 corporate family rating, are unchanged and the outlook remains stable.

The new $350 million senior notes will have identical terms and conditions as the existing 5¾% senior notes due 2025.

The new senior notes as well as the existing $525 million 5½% senior notes due 2024 and $250 million 5¾% senior notes due 2025 are each rated Ba3 or one notch below the Ba2 corporate family rating, reflecting their effective subordination to the (unrated) secured $500 million revolving credit facility due 2017 ($103.4 million outstanding as of Dec. 24), Moody’s explained.

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