New Issue: Suburban Propane prices $350 million 5 7/8% 10-year notes at par

By Paul A. Harris

Portland, Ore., Feb. 7 – Suburban Propane Partners, LP and its wholly owned direct subsidiary Suburban Energy Finance Corp. priced a $350 million issue of 10-year senior notes (Ba3/BB-) at par to yield 5 7/8% on Tuesday, according to a syndicate source.

The yield printed in the middle of the 5¾% to 6% yield talk.

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

The Whippany, N.J.-based distributor of propane, fuel oil and electricity in deregulated markets plans to use the proceeds to repurchase its 7 3/8% senior notes due 2021.

Issuers:	Suburban Propane Partners, LP and Suburban Energy Finance Corp.
Amount:	$350 million
Maturity:	March 1, 2027
Securities:	Senior notes
Left bookrunner:	Wells Fargo Securities LLC
Joint bookrunners:	BofA Merrill Lynch, Citizens Capital Markets Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC
Co-managers:	BNP Paribas Securities Corp., Capital One Securities Inc., HSBC Securities (USA) Inc., TD Securities (USA) LLC, BB&T Capital Markets
Coupon:	5 7/8%
Price:	Par
Yield:	5 7/8%
Spread:	348 bps
Call:	Make-whole call at Treasuries plus 50 bps until March 1, 2022, then callable at 102.938
Equity clawback:	35% at 105.875 until March 1, 2020
Trade date:	Feb. 7
Settlement date:	Feb. 14
Ratings:	Moody's: Ba3
	S&P: BB-
Distribution:	SEC registered
Price talk:	5¾% to 6%
Marketing:	Quick to market

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