Suburban Propane plans to sell $650 million 10-year notes on Monday; initial talk mid 5% area

By Paul A. Harris

Portland, Ore., May 10 – Suburban Propane Partners, LP and Suburban Energy Finance Corp. plan to price a $650 million offering of 10-year senior notes in a Monday drive-by trailing a conference call with investors, according to market sources.

Initial talk has the deal coming to yield in the mid-5% area.

BofA Securities Inc. is the left bookrunner. Wells Fargo Securities LLC, Citizens Capital Markets Inc. and J.P. Morgan Securities LLC are the joint bookrunners.

BNP Paribas Securities Corp., Capital One Securities Inc., HSBC Securities (USA) Inc., TD Securities (USA) LLC and Truist Securities Inc. are the senior co-managers. Citigroup Global Markets Inc. is the co-manager.

The Rule 144A and Regulation S for life notes become callable after five years at par plus 50% of the coupon. The notes feature a three-year 35% equity clawback at par plus the full coupon and have a 101% poison put.

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.

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