WHIPPANY, N.J., March 3, 2016 /PRNewswire/
-- Suburban Propane Partners, L.P. (NYSE: SPH), a
nationwide distributor of propane, fuel oil and related products
and services, as well as a marketer of natural gas and electricity,
today announced the refinancing of the senior secured credit
facility (the "Revolving Credit Facility") of its operating
partnership, Suburban Propane, L.P. The new five-year Revolving
Credit Facility amends and restates the previous revolving credit
facility dated January 5, 2012 to,
among other things: (i) extend the maturity date from
January 5, 2017 through March 3,
2021; (ii) reduce the borrowing rate; (iii) amend
certain affirmative and negative covenants and (iv) increase the
revolving credit commitments thereunder from $400 million to $500
million.
The Revolving Credit Facility will be used to provide liquidity
for general corporate purposes, including working capital, capital
expenditures and acquisitions. The bank syndication supporting the
new facility is comprised of a diverse group of fourteen banks led
by Bank of America Merrill Lynch and Wells Fargo Securities, LLC,
as Joint Lead Arrangers and Joint Book Runners. Bank of America,
N.A. is serving as Administrative Agent.
In announcing the refinancing, Chief Financial Officer and Chief
Accounting Officer Michael Kuglin
said, "We are very pleased with the outcome of this opportunistic
refinancing of our revolving credit facility, which we have
completed in advance of the expiration of our previous credit
facility. Despite challenging market conditions, particularly in
the credit markets, this new facility improves our cost of capital,
further extends our debt maturities until 2021, and increases our
available borrowing capacity in support of our long-term growth
initiatives. We are very appreciative of the support provided by
our bank group, as the syndication was well oversubscribed."
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 in the customer service business
since 1928. The Partnership serves the energy needs of
approximately 1.1 million residential, commercial, industrial and
agricultural customers through 700 locations in 41
states.
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SOURCE Suburban Propane Partners, L.P.