Suburban Propane holders deliver consents needed for 6 7/8% notes

By Susanna Moon

Chicago, March 19 - Suburban Propane Partners, LP said its subsidiary Suburban Energy Finance Corp. received consents from holders of more than half of their $250 million of 6 7/8% senior notes due 2013 as of 5 p.m. ET on Thursday.

Accordingly, a supplemental indenture has been executed. The companies were soliciting consents from holders of a majority of notes to amend the indenture to eliminate some covenants and default provisions.

Holders tendered $125.34 million principal amount of the notes as of 5 p.m. ET on March 18.

Holders who tender their notes by 5 p.m. on March 22, the consent deadline, will receive $1,025.42 for each $1,000 principal amount of notes, including a consent payment of $30.00 per note.

There was an early settlement option, and holders who tendered notes by the consent deadline could receive payment as early as March 23, according to a previous press release.

The settlement date for notes tendered after the consent date is expected to be April 6.

Suburban Propane said the closing of the offer requires receipt of the required consents to amend and supplement the notes' indenture and the completion of the aforementioned senior debt offering.

The offer is not conditioned on a minimum tender amount.

The closing of the offer does require, however, that Suburban complete its public offering of $250 million principal amount of 7 3/8% senior notes due 2020.

Suburban Propane previously said it plans to redeem any remaining notes outstanding after the offer is complete.

Bank of America Merrill Lynch (attn: debt advisory services group; 888 292-0070 or collect 980 388-4603) is the dealer manager. D.F. King & Co., Inc. (800 488-8035 or collect 212 269-5550) is the information agent. The Bank of New York Mellon (212 815-3687) is the depositary.

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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