Suburban Propane Partners, L.P. Announces Completion of $350,000,000 Issuance of 6.500% Senior Notes due 2035

Rhea-AI Summary

Suburban Propane Partners (NYSE:SPH) completed a private offering of $350,000,000 aggregate principal amount of 6.500% Senior Notes due 2035 on December 22, 2025. The co-issuer is Suburban Energy Finance Corp.

Net proceeds were approximately $344.3 million, which, together with borrowings under a revolving credit facility, will fund the redemption of all outstanding 5.875% senior notes due 2027 and related fees and expenses. A conditional redemption notice was sent December 8, 2025, and the redemptions are scheduled to occur on January 7, 2026.

Positive

• $350.0M 6.500% senior notes issued due 2035
• Net proceeds of approximately $344.3M
• Proceeds allocated to redeem all 5.875% 2027 senior notes

Negative

• New coupon of 6.500% versus prior 5.875% increases interest cost

Key Figures

Senior notes amount $350,000,000 Aggregate principal amount of 6.500% Senior Notes due 2035

Coupon rate 6.500% Interest rate on Senior Notes due 2035

Net proceeds $344.3 million Approximate net proceeds from 2035 Senior Notes after expenses

Redeemed notes coupon 5.875% Coupon on Senior Notes due 2027 being redeemed

Redemption date January 7, 2026 Scheduled redemption date for 2027 Senior Notes

Current price $18.54 Last price before news publication

52-week high $22.24 52-week high before this announcement

52-week low $16.92 52-week low before this announcement

Market Reality Check

$18.26 Last Close

Volume Volume 709,889 is about 4.75x the 20-day average of 149,556, indicating elevated trading activity ahead of and around this debt transaction. high

Technical Units last traded at $18.54, modestly below the 200-day moving average of $19.04, suggesting a slight downward bias before this refinancing update.

Peers on Argus

Peers showed mixed, mostly modest moves: NWN down 1.17%, OPAL down 2.37%, while CTRI, ARIS, and MDU were up between 0.69% and 1.72%. With no peers in the momentum scanner and no same‑day peer headlines, SPH’s elevated volume around this notes completion appears more company‑specific than sector‑driven.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 08	Debt offering pricing	Neutral	-0.9%	Priced $350M 6.500% senior notes due 2035 in private placement.
Dec 08	Debt offering launch	Neutral	-0.3%	Announced proposed $350M senior notes due 2035 to refinance 2027 notes.
Dec 02	Community initiative	Neutral	-2.5%	Detailed 2025 SuburbanCares volunteer activities across 20 communities.
Nov 26	Annual report filing	Neutral	+0.4%	Filed Form 10-K for fiscal 2025 with operating and customer metrics.
Nov 13	Earnings results	Positive	+1.7%	Reported higher net income, EBITDA, propane volumes, and ATM proceeds.

Pattern Detected

Recent Suburban Propane headlines—including debt offerings, community initiatives, and earnings—have generally produced modest single‑day price moves, often slightly negative around financing announcements.

Recent Company History

Over the last few months, Suburban Propane reported stronger fiscal 2025 results, with net income of $106.6M and Adjusted EBITDA of $278.0M, alongside higher propane volumes and acquisition activity. Subsequent news focused on its $350M 6.500% senior notes due 2035, first as a proposed and then priced private offering intended to refinance 5.875% notes due 2027. Community and reporting updates, such as the 10-K and SuburbanCares initiative, drew relatively small price reactions, framing today’s completion of the refinancing as the execution phase of an already signaled capital structure move.

Market Pulse Summary

This announcement completes Suburban Propane’s previously signaled refinancing, issuing $350,000,000 of 6.500% senior notes due 2035 and using roughly $344.3 million in net proceeds, plus revolver borrowings, to redeem 5.875% notes due 2027 on January 7, 2026. It follows earlier disclosures about the planned offering. Investors may track overall debt levels, interest costs, and future filings to understand how this longer‑dated debt fits with the capital structure discussed in recent 10-K and earnings reports.

Key Terms

senior notes financial

"issuance of $350 million aggregate principal amount of 6.500% Senior Notes due 2035"

Senior notes are a type of loan that a company borrows from investors, promising to pay it back with interest. They are called "senior" because in case the company faces financial trouble, these lenders are paid back before others. This makes senior notes safer for investors compared to other types of loans or bonds.

qualified institutional buyers financial

"in a private offering to "qualified institutional buyers," as defined in Rule 144A"

Qualified institutional buyers are large organizations, like big investment firms or banks, that are allowed to buy certain types of investment opportunities not available to everyday investors. Their size and experience matter because it ensures they understand and can handle complex financial deals, making markets more efficient and secure.

rule 144a regulatory

"as defined in Rule 144A under the Securities Act of 1933"

Rule 144A is a regulation that makes it easier for companies to sell private bonds to large investors without going through all the usual rules that apply to public sales. It matters because it helps companies raise money more quickly and privately, often attracting big investors looking for special deals.

regulation s regulatory

"outside the United States under Regulation S under the Securities Act"

Regulation S is a set of rules that allows companies to sell securities (like shares or bonds) to investors outside the United States without having to follow all U.S. securities laws. It matters because it makes it easier for companies to raise money from international investors while still complying with U.S. regulations.

revolving credit facility financial

"used, together with borrowings under a revolving credit facility, to fund the redemption"

A revolving credit facility is a type of loan that a business can borrow from whenever it needs money, up to a set limit. It’s like having a credit card for companies—allowing them to borrow, pay back, and borrow again as needed, providing flexibility for managing cash flow or funding short-term expenses.

AI-generated analysis. Not financial advice.

WHIPPANY, N.J., Dec. 22, 2025 /PRNewswire/ -- Suburban Propane Partners, L.P. (NYSE:SPH) ("Suburban Propane") announced today the completion of its previously announced offering of $350 million aggregate principal amount of 6.500% Senior Notes due 2035 (the "2035 Senior Notes"), in a private offering to "qualified institutional buyers," as defined in Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and non-U.S. persons outside the United States under Regulation S under the Securities Act. Suburban Energy Finance Corp. (together with Suburban Propane, the "Issuers"), a wholly-owned direct subsidiary of Suburban Propane, is 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 approximately $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 (the "2027 Senior Notes"), and to pay related fees and expenses. On December 8, 2025, the Issuers sent a conditional notice of redemption to redeem all of the 2027 Senior Notes and today 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, which is scheduled to occur on January 7, 2026.

This press release is for informational purposes only and is not an offer to sell or a solicitation of an offer to buy any securities. The 2035 Senior Notes have not been registered under the Securities Act or the securities laws of any other jurisdiction and may not be offered or sold in the United States or to, or for the benefit of U.S. persons, except pursuant to an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws.

About Suburban Propane Partners, L.P.

Suburban Propane Partners, L.P. ("Suburban Propane") is a publicly traded master limited partnership listed on the New York Stock Exchange. Headquartered in Whippany, New Jersey, Suburban Propane 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, as well as 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 approximately 750 locations across 42 states.

Suburban Propane is supported by three core pillars: (1) Suburban Commitment to Excellence-showcasing Suburban Propane's almost 100-year legacy, and ongoing commitment to the highest standards for safety, dependability, flexibility, and reliability that underscores Suburban Propane's commitment to excellence in customer service; (2) SuburbanCares-highlighting continued dedication to giving back to local communities across Suburban Propane's national footprint; and (3) Go Green with Suburban Propane-promoting propane and renewable propane as versatile, low-carbon energy solutions and investing in the next generation of innovative, renewable energy alternatives.

For additional information on Suburban Propane, please visit www.suburbanpropane.com.

Forward-Looking Statements

This press release includes forward-looking statements. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Suburban Propane expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements reflect Suburban Propane's expectations or forecasts based on assumptions made by the partnership. These statements are subject to risks including those relating to market conditions, financial performance and results, prices and demand for natural gas and oil and other important factors that could cause actual results to differ materially from our forward-looking statements. These risks are further described in Suburban Propane's reports filed with the Securities and Exchange Commission.

Any forward-looking statement speaks only as of the date on which such statement is made and Suburban Propane undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise.

View original content to download multimedia:https://www.prnewswire.com/news-releases/suburban-propane-partners-lp-announces-completion-of-350-000-000-issuance-of-6-500-senior-notes-due-2035--302648207.html

SOURCE Suburban Propane Partners, L.P.

FAQ

What did Suburban Propane (SPH) announce on December 22, 2025 about debt issuance?

Suburban Propane completed a private offering of $350.0M 6.500% senior notes due 2035.

How much net proceeds did SPH receive from the 2035 senior notes offering?

The net proceeds were approximately $344.3 million after estimated offering expenses.

What will SPH use the proceeds from the 6.500% 2035 notes for?

Proceeds, together with revolving credit borrowings, will fund the redemption of all outstanding 5.875% senior notes due 2027 and pay related fees and expenses.

When will Suburban Propane redeem the 2027 senior notes after the offering?

The Issuers deposited sufficient funds with the trustee to redeem the 2027 senior notes on the scheduled redemption date of January 7, 2026.

Were the 2035 senior notes registered for public resale in the United States?

No; the 2035 senior notes were issued in a private placement under Rule 144A and Regulation S and have not been registered under the Securities Act.