Suburban Propane Partners, L.P. Extends Consent Date And Expiration Date And Increases Cash Consent Payment In Exchange Offers And Consent Solicitations In Connection With Planned Acquisition Of Inergy, L.P.'s Retail Propane Operations
WHIPPANY, N.J., May 24, 2012 /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 (the "Partnership"), today announced that it and Suburban Energy Finance Corp. (collectively, " Suburban") have extended the consent date (the " Consent Date") and the expiration date (the " Expiration Date") and increased the cash consent payment for their previously announced offers to exchange (the " Exchange Offers") and related consent solicitations (the " Consent Solicitations"). In the Exchange Offers, Suburban is offering to exchange any and all of the outstanding 7% Senior Notes due 2018 and 6-7/8% Senior Notes due 2021 issued by Inergy, L.P. and Inergy Finance Corp. (collectively, the " Inergy Notes"), which have an aggregate principal amount outstanding of $1.2 billion, for a combination of $1.0 billion in aggregate principal amount of new unsecured 7% Senior Notes due 2018 and 6-7/8% Senior Notes due 2021 (collectively, the " SPH Notes"), respectively, issued by Suburban and $200.0 million in cash. As of 5:00 p.m., New York City time, on May 23, 2012, approximately 32% of the outstanding aggregate principal amount of Inergy Notes had been tendered.
The Consent Date has been extended to 5:00 p.m., New York City time, on May 31, 2012. The Expiration Date has been extended to 11:59 p.m., New York City time, on June 14, 2012, unless extended or terminated. Withdrawal rights with respect to the Exchange Offers and revocation rights with respect to the Consent Solicitations expired as scheduled at 5:00 p.m., New York City time, on May 16, 2012.
In addition, Suburban announced that it is now offering to pay
$30.0 million in aggregate in cash to holders of Inergy Notes, on a pro rata basis, who deliver a valid consent by the Consent Date (the "
Cash Consent Payment"). Assuming that consents are validly delivered for all
$1.2 billion of the Inergy Notes, the Cash Consent Payment will be
$1,000 principal amount of Inergy Notes as to which a holder delivers a valid consent by the Consent Date. Assuming that consents are validly delivered for
$1.0 billion of the Inergy Notes, the Cash Consent Payment will be
$1,000 principal amount of Inergy Notes as to which a holder delivers a valid consent by the Consent Date. Suburban had previously been offering a cash consent payment of
$1,000 principal amount of Inergy Notes as to which a holder delivers a valid consent by the Consent Date. Holders who have previously tendered Inergy Notes in the Exchange Offers, and delivered consents with respect thereto in the Consent Solicitations, will share pro rata in the increased Cash Consent Payment. Suburban continues to reserve the right to lower the minimum tender condition requiring the tender of at least
$1.0 billion aggregate principal amount of Inergy Notes.
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