Suburban Propane refinances $500M credit facility, shares rise 2.1%

By Bobby Samwell • Monday, March 18 15:17 • Permanent Link

Suburban Propane Partners, L.P. has just announced the refinancing of its $500 million senior secured credit facility. The new five-year revolving credit facility extends the maturity date from March 5, 2025 to the earlier of (a) the date that is ninety-one (91) days prior to maturity of the 5.875% senior notes, due March 1, 2027, or (b) March 15, 2029. The partnership retains the ability to increase the facility size to $850 million.

The bank syndication supporting the new facility is comprised of a diverse group of eight banks. Bank of America, N.A. is serving as the administrative agent, with Wells Fargo Bank, National Association, JP Morgan Chase Bank, N.A., Citizens Bank, National Association, Capital One, National Association, M&T Bank, HSBC Bank USA, N.A., and CoBank, ACB also participating in the syndication.

Suburban Propane Partners, L.P., headquartered in Whippany, New Jersey, has been in the customer service business since 1928 and is a nationwide distributor of propane, renewable propane, renewable natural gas, fuel oil, and related products and services. The partnership services the energy needs of approximately 1 million residential, commercial, governmental, industrial, and agricultural customers through approximately 700 locations across 42 states.

In terms of financial performance, the partnership's chief financial officer, Michael Kuglin, stated that the refinancing maintains the interest rate pricing grid and financial ratio covenants, providing enhanced financial flexibility in support of long-term strategic growth initiatives.

As a result of these announcements, the company's shares have moved 2.1% on the market, and are now trading at a price of $19.81. Check out the company's full 8-K submission here.

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