Suburban Propane tenders for $496.56 million 7½% senior notes due 2018

By Susanna Moon

Chicago, May 12 - Suburban Propane Partners, LP and Suburban Energy Finance Corp. began a cash tender offer for their $496,557,000 principal amount of 7½% senior notes due 2018.

The total purchase price is $1,061.35 for each $1,000 principal amount of notes tendered by 5 p.m. ET on May 23, the consent date.

The total amount includes a consent payment of $30.00 per $1,000 principal amount of notes.

Those who tender after the consent date will receive $1,031.35 per $1,000 of notes.

Holders also will receive accrued interest up to but excluding the settlement date of June 10.

The tender offer will end at 11:59 p.m. ET on June 9.

The companies also are soliciting consents to amend the notes eliminate certain covenants with respect to the notes and certain events of default and other provisions with respect to the notes, according to a press release.

Holders tendering their notes will be deemed to have delivered their consents.

Suburban needs consents for at least a majority of the outstanding notes in order to amend the notes.

The offer is conditioned on the company securing the needed consents to amend the notes and the completion of a new senior debt offering.

Wells Fargo Securities, LLC (866 309-6316 and 704 410-4760 collect) is the dealer manager. D.F. King & Co., Inc. (800 549-6697 and 212 269-5550 collect or at sph@dfking.com) is the information agent.

Suburban Propane is a Whippany, N.J.-based retail marketer and distributor of propane, fuel oil and refined fuels.

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