New Issue: Suburban Propane upsized $175 million 10-year notes yield 6 7/8%

By Paul A. Harris

St. Louis, Dec. 18 - Suburban Propane Partners LP and Suburban Energy Finance Corp. priced an upsized $175 million issue of 10-year senior notes (B1/B) Thursday at par to yield 6 7/8%, a source said.

The issue, which matures Dec. 15, 2013, was increased from a planned $150 million.

Revised price talk was in the area of 6 7/8%, in from 7%-7¼%.

Wachovia Securities and Goldman Sachs & Co. ran the books on the Rule 144A issue.

Suburban Propane, a Whippany, N.J., propane supplier, plans to use proceeds of the offering to help fund the acquisition of Agway Energy Products LLC, Agway Energy Services Inc., and Agway Energy Services PA Inc.

Issuer:	Suburban Propane Partners LP/Suburban Energy Finance Corp.
Amount:	$175 million (increased from $150 million)
Maturity:	Dec. 15, 2013
Security description:	Senior notes
Bookrunners:	Wachovia Securities, Goldman Sachs & Co.
Coupon:	6 7/8%
Price:	Par
Yield:	6 7/8%
Spread:	274 basis points over the 4¼% Treasuries due November 2013, yielding 4.14%
Call protection:	Non-callable prior to Dec. 15, 2008, then at 103.438, 102.292, 101.146, par on Dec. 15, 2011 and thereafter
Equity clawback:	Up to 35% at 106.875 until Dec. 15, 2006
Settlement date:	Dec. 23 (T + 3)
Ratings:	Moody's: B1
	Standard & Poor's: B
Rule 144A Cusip:	864486AA3
Price talk:	6 7/8% area (revised from 7%-7¼%)

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.