June 15, 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 "
"), today announced that it and Suburban Energy Finance Corp. (collectively, "
") have extended the consent date (the "
") and the expiration date (the "
"), increased the coupon of the SPH Notes (defined below) and Cash Consent Payment (as defined below) and modified certain other terms for their previously announced offers to exchange (the "
") and related consent solicitations (the "
") in connection with certain outstanding notes of Inergy, L.P.
Following discussions with certain Inergy, L.P. noteholders, Suburban is now 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 "
"), which have an aggregate principal amount outstanding of
, for a combination of
in aggregate principal amount of new unsecured 7 1/4 % Senior Notes due 2018 and 7 1/8% Senior Notes due 2021 (collectively, the "
"), respectively, issued by Suburban and
in cash. The revised terms of the SPH Notes reflect an increase in the interest rates on the SPH Notes of 0.25% as compared with the terms of the securities as previously offered. The revised terms of the SPH Notes also include certain covenant changes.
In addition, Suburban announced that it is now offering to pay an aggregate of
in cash to holders of Inergy Notes, on a pro rata basis, who deliver a valid consent by the new Consent Date (the "
Cash Consent Payment
"). Assuming that consents are validly delivered (and accepted) for all
aggregate principal amount of the Inergy Notes, the Cash Consent Payment will be approximately
principal amount of Inergy Notes as to which a holder delivers a valid consent by the Consent Date. If consents are validly delivered (and accepted) for
of aggregate principal amount of the Inergy Notes, the Cash Consent Payment will be
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, subject to the terms and conditions of the Exchange Offers and Consent Solicitations. Suburban continues to reserve the right to lower the minimum tender condition requiring the tender of at least
aggregate principal amount of Inergy Notes.
The Consent Date has been extended to
New York City
June 21, 2012
. The Expiration Date has been extended to
New York City
July 6, 2012
, unless extended or terminated. As of
New York City
June 14, 2012
, approximately 34% of the outstanding aggregate principal amount of Inergy Notes had been tendered.
Updated unaudited pro forma condensed combined financial information reflecting the modifications to the terms of the Exchange Offers and Consent Solicitations has been included as Exhibit 99.2 to the Partnership's Current Report on Form 8-K filed on today's date.