Suburban Propane Ignites $225M Bond Offer
March 10, 2010
Suburban Propane Partners added $225 million to the junk bond queue today, announcing a deal that will fund a tender offer.
The Whippany, N.J.-based propane distributor plans to publicly offer $225 million in senior notes due 2020, it said. Price talk on the deal, which could price today, is between 7.5% and 7.625%, according to Standard & Poor’s. Bank of America Merrill Lynch is the lead underwriter.
The company will use the proceeds to finance a tender offer for its $250 million in 6.875% senior notes due 2013. Holders of the 2013 notes will receive $1,025.42 for each $1,000 tendered by March 22, including a $30 per $1,000 consent payment. The offer expires April 5.
Moody’s Investors Service rated the proposed notes Ba3.
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