KANSAS CITY, Mo.--(BUSINESS WIRE)--Aug. 17, 2012--
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
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.
Trading of NRGY Units
Beginning on or about August 27, 2012, and continuing through the
Distribution Date, Inergy common units trading under the ticker symbol
“NRGY” will trade with the right to receive the SPH common units. Inergy
common unitholders who sell their NRGY common units during the period on
or about August 27, 2012, and continuing through the Distribution Date
will be selling the right to receive the SPH common units even though
they owned Inergy common units on the record date. Investors are
encouraged to consult with their financial advisors regarding the
specific implications of buying or selling Inergy common units on or
before the Distribution Date.
About Inergy, L.P.
Inergy, L.P., headquartered in Kansas City, Missouri, is a publicly
traded master limited partnership. Inergy’s operations include a natural
gas storage business in Texas and an NGL supply logistics and marketing
business that serves customers in the United States and Canada. Through
its general partner interest and majority equity ownership interest in
Inergy Midstream, L.P. (NYSE:NRGM), Inergy is also engaged in the
development and operation of natural gas and NGL storage and
transportation business in the Northeast region of the United States.
This press release may include certain statements concerning
expectations for the future that are forward-looking statements as
defined by federal law such as the expectation regarding the timing of
the distribution and the distribution ratio. Such forward-looking
statements are subject to a variety of known and unknown risks,
uncertainties, and other factors that are difficult to predict and many
of which are beyond management’s control. Should one or more of these
risks or uncertainties materialize or any underlying assumption proves
incorrect, actual results may vary materially from those anticipated,
estimated, or projected. Among the key factors that could cause actual
results to differ materially from those referred to in the
forward-looking statements are: weather conditions that vary
significantly from historically normal conditions; the general level of
petroleum product demand and the availability of propane supplies; the
price of propane to the consumer compared to the price of alternative
and competing fuels; the demand for high deliverability natural gas
storage capacity in the Northeast; our ability to successfully implement
our business plan, including the placement of our expansion projects
in-service in a timely manner; the outcome of rate decisions levied by
the Federal Energy Regulatory Commission; our ability to generate
available cash for distribution to unitholders; and the costs and
effects of legal, regulatory, and administrative proceedings against us
or which may be brought against us. These and other risks and
assumptions are described in Inergy’s annual reports on Form 10-K and
other reports that are available from the United States Securities and
Exchange Commission. Readers are cautioned not to place undue reliance
on forward-looking statements, which reflect management’s view only as
of the date made. We undertake no obligation to update any
forward-looking statement, except as otherwise required by law.
Corporate news, unit prices, and additional information about Inergy,
including reports from the United States Securities and Exchange
Commission, are available on the company’s website, www.inergylp.com.
For more information, contact Mike Campbell in Inergy’s Investor
Relations Department at 816-842-8181 or via e-mail at email@example.com.
Source: Inergy, L.P.
Mike Campbell, 816-842-8181