WHIPPANY, N.J., March 16 /PRNewswire-FirstCall/ -- Suburban Propane
Partners, L.P. (NYSE: SPH) (the "Partnership"), a marketer of propane gas,
fuel oil and related products and services nationwide, today announced that it
proposes to offer $250 million of 6.875% senior notes due 2013 to eligible
purchasers in a Rule 144A private placement (the "Senior Notes"). The Senior
Notes are expected to be issued as additional notes under the indenture
governing the Partnership's existing outstanding $175 million aggregate
principal amount of 6.875% senior notes due 2013. Concurrent with the offering
of the Senior Notes, the Partnership intends to enter into a new five-year
$125 million term loan facility.
The Partnership intends to use the net proceeds from the offering of the
Senior Notes, together with borrowings under the term loan facility, to redeem
all of the outstanding $297.5 million principal amount of 7.54% senior notes
due 2011 and the $42.5 million principal amount of 7.37% senior notes due 2012
of Suburban Propane, L.P., the Partnership's operating partnership and wholly
owned subsidiary, including estimated prepayment premiums and related fees and
expenses.
Completion of the private placement of Senior Notes and the new term loan
facility will be subject to market and other conditions. The private
placement will be made only to qualified institutional buyers within the
United States and non-U.S. investors outside the United States. The Senior
Notes to be offered in this offering have not been registered under the
Securities Act of 1933 or applicable state securities laws, and may not be
offered or sold in the United States absent registration or an applicable
exemption from the registration requirements of the Securities Act and
applicable state laws. This press release shall not constitute an offer to
sell or a solicitation of an offer to buy the notes nor shall there be any
sale of notes in any state or jurisdiction in which such offer, solicitation
or sale would be unlawful prior to registration or qualification under the
securities laws of such state or jurisdiction.
Suburban Propane Partners, L.P. is a publicly traded Master Limited
Partnership listed on the New York Stock Exchange. Headquartered in Whippany,
New Jersey, Suburban has been continuously engaged in the retail propane
business since 1928. The Partnership serves the energy needs of approximately
1,000,000 residential, commercial, industrial and agricultural customers
through more than 370 customer service centers in 30 states.
SOURCE Suburban Propane Partners, L.P.
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http://suburbanpropane.com
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CONTACT:
Robert M. Plante, Vice President & Chief
Financial Officer, +1-973-503-9252
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