Suburban Propane Partners to Float New Unit Issue

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Suburban Propane Partners is expanding its capital base with an issue of its common units. The company has floated a 2.7 million-strong issue of the units in an underwritten public offering at a price of $48.16 apiece. Additionally, SPP has granted its underwriters a 30-day purchase option for up to an additional 405,000 units.

The firm said it plans to use the estimated $124.6 million in proceeds from the issue to pay down debt, as well as for working capital and "general partnership purposes."

Bank of America's Merrill Lynch, Citigroup, JPMorgan Chase unit J.P. Morgan, Credit Suisse, Goldman Sachs, Raymond James, and the Securities divisions of Wells Fargo and Deutsche Bank are the joint book-running managers of the offering. SPP expects that the delivery of the new units will be effected on May 17.

The article Suburban Propane Partners to Float New Unit Issue originally appeared on Fool.com.

Fool contributor Eric Volkman has no position in any stocks mentioned. The Motley Fool recommends Goldman Sachs and Wells Fargo. It owns shares of Bank of America, Citigroup, JPMorgan Chase, and Wells Fargo. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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