Suburban Propane Partners Enters into $100 Million Equity Distribution Agreement

Suburban Propane Partners, L.P. (NYSE: SPH), a nationwide distributor of propane, announced that it has entered into an Equity Distribution Agreement with Wells Fargo Securities, LLC, J.P. Morgan Securities LLC, BofA Securities, Inc., and Evercore Group L.L.C. /s/ Michael A. Kuglin, CFO of Suburban Propane, signed off on the agreement.

Under the terms of the agreement, Suburban Propane, a publicly-traded master limited partnership based in Whippany, New Jersey, might issue and sell the Partnership’s common units amounting to an aggregate offering of up to $100 million from time to time, using the Agents’ reasonable commercial efforts.

These potential sales, if executed, could be in the form of an “at the market offering” according to Rule 415(a)(4) under the Securities Act of 1933. The Act allows direct sales on or via the New York Stock Exchange, and Suburban Propane may also decide to sell the common units directly to the acting agents for their accounts, under agreeable terms.

The agreement further entitles each Agent to a commission, coming from Suburban Propane, of up to 1.5% of the gross sales price per Common Unit sold, with the exact commission rate to be agreed upon later. Suburban Propane has expressed its intent to use any net proceeds from the potential offering for acquisitions and general limited partnership purposes.

The Partnership has already filed a registration statement with the Securities and Exchange Commission (SEC) to legitimize the offer and sale of Common Units under the Securities Act. The SEC declared the registration statement effective on February 20, 2025.

The Equity Distribution Agreement includes customary representations, warranties, and agreements from both Suburban Propane and the Agents, besides detailing the indemnification rights and obligations of the parties involved, and termination provisions.

It is noteworthy that these Agents have previously provided various finance-related services to Suburban Propane and its affiliates, for which they’ve received customary fees. As part of their business endeavors, the Agents may continue to actively trade the Partnership’s securities.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Suburban Propane Partners’s 8K filing here.

About Suburban Propane Partners

Suburban Propane Partners, L.P., through its subsidiaries, engages in the retail marketing and distribution of propane, renewable propane, fuel oil, and refined fuels in the United States. The company operates through four segments: Propane, Fuel Oil and Refined Fuels, Natural Gas and Electricity, and All Other.