Suburban Propane Partners announced Dec. 22 the completion of its previously announced offering of $350 million aggregate principal amount of 6.500% senior notes due 2035, in a private offering to “qualified institutional buyers” and non-U.S. people outside the United States. Suburban Energy Finance Corp., a wholly owned direct subsidiary of Suburban Propane, is the co-issuer of the 2035 senior notes.
Suburban Energy Finance Corp., a wholly owned direct subsidiary of Suburban Propane, will serve as the co-issuer of the 2035 senior notes.
The net proceeds of the offering of the 2035 senior notes, after deducting estimated offering expenses, was about $344.3 million, all of which will be used, together with borrowings under a revolving credit facility, to fund the redemption of all of the issuers’ 5.875% senior notes due 2027, and to pay related fees and expenses.
On Dec. 8, the issuers sent a conditional notice of redemption to redeem all of the 2027 senior notes and on Dec. 22 the issuers satisfied and discharged the 2027 senior notes in accordance with their terms.
The issuers have deposited with the trustee sufficient funds to redeem the outstanding aggregate principal amount of all of the 2027 senior notes on the redemption date, scheduled for Jan. 7, 2026. This financial move is intended to manage the company’s debt obligations and demonstrate its commitment to financial stability and growth.
Suburban Propane Partners is a publicly traded master limited partnership listed on the New York Stock Exchange. The company has been in the customer service business since 1928 and is a nationwide distributor of propane, renewable propane, renewable natural gas, fuel oil and related products and services.
It also is a marketer of natural gas and electricity and producer of and investor in low carbon fuel alternatives, servicing the energy needs of approximately 1 million residential, commercial, governmental, industrial and agricultural customers through about 750 locations in 42 states.
Suburban Propane shares have risen 8.6% in 2025 on the New York Stock Exchange and the company has a market cap of $1.24 billion.
