Suburban Propane wraps oversubscribed tender offer for 6 7/8% notes

By Susanna Moon

Chicago, Sept. 8 - Suburban Propane Partners, LP and Suburban Energy Finance Corp. said investors tendered $302,616,000 of 6 7/8% senior notes due 2013.

The tender offer for up to $175 million principal amount of the notes expired at 9 a.m. ET on Sept. 8. It began on Aug. 10.

As more than $175 million principal amount of notes was tendered, Suburban said it accepted for purchase approximately 57.9% of the tendered notes on a pro rata basis.

Investors had tendered $301.79 million principal amount of their 6 7/8% notes as of 5 p.m. ET on Aug. 21, the early tender date.

The company is offering $1,012.50 for each $1,000 principal amount of notes, which includes an early tender payment of $30.00.

Holders will also receive accrued interest up to but excluding the settlement date, which is expected to be Sept. 9.

The closing of the tender offer is conditioned on financing, among other things, but is not conditioned on any minimum amount of notes being tendered.

Bank of America Merrill Lynch (888 292-0070 or 980 388-4603) is the lead dealer manager, and Wells Fargo Securities is the co-dealer manager. Global Bondholder Services Corp. (866 795-2200 or 212 430-3774) is the information agent.

Suburban Propane Partners supplies propane, fuel oil and related products and services and markets natural gas and electricity. The Whippany, N.J.-based company is structured as a master limited partnership.

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