Inergy, L.P. (NYSE:NRGY) (Inergy) announced that its Board of Directors has set the record date and distribution date for the distribution to Inergy unitholders of 14,058,418 of the common units of Suburban Propane Partners, L.P. (NYSE:SPH) (SPH) held by Inergy.
As previously announced, on August 1, 2012, Inergy received, as partial consideration for the contribution of its retail propane operations to SPH, approximately 14.2 million SPH common units. Under terms of the contribution agreement, Inergy agreed to distribute on a pro rata basis approximately 14.1 million of the SPH common units to the Inergy unitholders.
The Board has declared a record date of August 29, 2012, for the distribution of the SPH units. Based upon the total number of Inergy units currently outstanding, the distribution of the SPH common units is expected to approximate 0.108 SPH common units for each Inergy limited partner unit outstanding on the record date. The distribution of the SPH common units is expected to occur after the market closes on September 14, 2012, (the “Distribution Date”). The transfer agent will not distribute any fractional SPH common units. Each Inergy unitholder that would have been entitled to receive a fractional unit in the distribution from NRGY will instead be entitled to receive from Inergy a cash payment equal to the value of such fractional unit based on the market price of the SPH common units.
Holders of Inergy limited partner interests on the record date are not required to take any action in order to receive SPH common units in the distribution. Unitholders entitled to receive the distribution will either receive a book-entry account statement reflecting their ownership of SPH common units, or their brokerage account will be credited for the SPH common units.
A prospectus will be delivered to all unitholders entitled to receive the distribution of SPH common units. The prospectus will describe SPH, including the risks of owning SPH common units, and other details regarding the distribution.