Suburban Propane gets needed consents to amend 7 3/8% senior notes

By Susanna Moon

Chicago, Feb. 25 – Suburban Propane Partners, LP said holders had tendered $225,092,000, or 90.04%, of the $250 million of 7 3/8 % senior notes due 2020 by 5 p.m. ET on Feb. 24, the consent date.

As a result, holders had delivered consents for more than the needed majority of notes, and a supplemental indenture to the notes has been executed, according to a press release.

As previously announced, the companies solicited consents to amend the notes indenture to eliminate some covenants and events of default under the notes, shorten the minimum notice period for redemption of the notes to three business days and amend other provisions.

The offer will continue until 11:59 p.m. ET on March 10. Tendered notes may no longer be withdrawn, as of the consent deadline.

Suburban Propane Partners and wholly owned subsidiary Suburban Energy Finance Corp. began the tender offer for their 7 3/8% notes on Feb. 10.

As previously announced, holders who tender their notes and deliver their consents by 5 p.m. ET on Feb. 24, the consent date, will receive the total payment of $1,041.68 for each $1,000 principal amount. The total amount includes a consent payment of $30.00 per $1,000 of notes.

Those who tender their notes after the consent deadline will receive $1,011.68 for each $1,000 of notes, which is the total amount less the consent payment.

The issuers will also pay accrued interest up to but excluding the settlement date, which is expected to be Feb. 25 for early tendered notes and March 11 for remaining tenders.

The offer is conditioned on the receipt of the required consents to amend the notes indenture and completion of a new senior debt offering.

The companies priced $250 million of 10-year senior notes at par to yield 5¾% on Feb. 10.

Wells Fargo Securities, LLC (866 309-6316 or 704 410-4760) is the dealer manager. D.F. King & Co., Inc. (866 745-0273, 212 269-5550 or sph@dfking.com) is the information agent.

Based in Whippany, N.J., Suburban Propane supplies propane, fuel oil and related products and services and markets natural gas and electricity.

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