WHIPPANY, N.J., Feb. 14, 2017 /PRNewswire/ -- Suburban
Propane Partners, L.P. (NYSE: SPH) ("Suburban Propane") announced
today the completion of the previously announced tender offer to
purchase any and all of the outstanding 7.375% Senior Notes due
2021 with CUSIP number 864486AG0 (the "2021 Notes") issued by
Suburban Propane and Suburban Energy Finance Corp. (together with
Suburban Propane, the "Issuers"), and the completion of the public
offering of $350,000,000 aggregate
principal amount of the Issuers' 5.875% senior notes due 2027 (the
"2027 Notes").
As of the expiration of the tender offer at 5:00 p.m., New York
City time, on February 13, 2017 (the "Expiration
Time"), approximately $250.7 million
of the $346.2 million aggregate
principal amount of 2021 Notes, or 72.4% of the aggregate principal
amount outstanding, had been validly tendered and not withdrawn,
which excludes approximately $6.6
million aggregate principal amount of 2021 Notes that remain
subject to guaranteed delivery procedures. The complete terms and
conditions of the tender offer were set forth in an Offer to
Purchase dated February 7, 2017 (the
"Offer to Purchase") that was made available to eligible holders of
the 2021 Notes.
The 2027 Notes were issued under an indenture for senior debt
securities, dated as of May 27, 2014,
as supplemented by the third supplemental indenture, dated as of
February 14, 2017, with The Bank of
New York Mellon, as trustee (the "Trustee"). The net proceeds of
the offering of the 2027 Notes, after deducting estimated offering
expenses, were approximately $344.0
million, all of which was or will be used, together with
borrowings under Suburban Propane's existing revolving credit
facility, to fund the purchase of 2021 Notes tendered and accepted
in the tender offer prior to the Expiration Time and the redemption
of any 2021 Notes remaining after the consummation of the tender
offer.
In accordance with the terms of the Offer to Purchase, the
Issuers made a cash payment to all holders who validly tendered
their 2021 Notes in the tender offer of $1,041.45 per $1,000 principal amount of 2021 Notes tendered
plus accrued and unpaid interest from the last interest payment
date to, but not including, the payment date of February 14, 2017.
Effective as of February 14, 2017, the Issuers (i) gave
notice to redeem all remaining 2021 Notes that were not validly
tendered in the tender offer at the Expiration Time and (ii)
satisfied and discharged the indenture governing the 2021 Notes in
accordance with its terms. The redemption price of any 2021 Notes
so redeemed is 103.688% of the principal amount thereof, plus
accrued and unpaid interest up to, but not including, the date of
redemption. The Issuers have deposited with the Trustee
sufficient funds to redeem, on the redemption date of March 16, 2017, any and all of the 2021 Notes
that were not tendered and validly accepted prior to the Expiration
Time. 2021 Notes subject to redemption are to be surrendered to the
Trustee in exchange for payment of the redemption price. Questions
relating to, and requests for additional copies of, the notice of
redemption should be directed to Corporate Trust Department, 500
Ross Street, 12th Floor, Pittsburgh,
PA 15262.
About Suburban Propane Partners, L.P.
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 Propane has been in the customer service
business since 1928. Suburban Propane serves the energy needs
of approximately 1.1 million residential, commercial, industrial
and agricultural customers through 675 locations in 41 states.
About Suburban Energy Finance Corp.
Suburban Energy Finance Corp. is a Delaware corporation and a wholly-owned
subsidiary of Suburban Propane formed for the sole purpose of
acting as the co-issuer of the 2021 Notes and the 2027 Notes and as
co-obligor for other debt securities Suburban Propane has
previously issued and may issue in the future. It has nominal
assets and does not and will not conduct any operations or have any
employees.
Forward-Looking Statements
This press release includes forward-looking statements.
All statements, other than statements of historical facts, included
in this press release that address activities, events or
developments that Suburban Propane expects, believes or
anticipates will or may occur in the future are forward-looking
statements, including statements regarding the use of proceeds of
the public offering . These statements reflect Suburban
Propane's expectations or forecasts based on assumptions made by
the partnership. These statements are subject to risks
including those relating to market conditions, financial
performance and results, prices and demand for natural gas and oil
and other important factors that could cause actual results to
differ materially from our forward looking statements. These
risks are further described in Suburban Propane's reports filed
with the Securities and Exchange Commission.
Any forward-looking statement speaks only as of the date on
which such statement is made and Suburban Propane undertakes no
obligation to correct or update any forward-looking statement,
whether as a result of new information, future events or
otherwise.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/suburban-propane-partners-lp-announces-completion-of-350000000-issuance-of-5875-senior-notes-due-2027-completion-of-tender-offer-for-7375-senior-notes-due-2021-and-redemption-of-remaining-7375-senior-notes-due-2021-300407459.html
SOURCE Suburban Propane Partners, L.P.