KANSAS CITY, Mo.--(BUSINESS WIRE)--Aug. 2, 2012--
Inergy, L.P. (NYSE:NRGY) (NRGY) announced it has closed the previously
announced agreement to contribute its retail propane operations to
Suburban Propane Partners, L.P. (NYSE:SPH) (SPH) in exchange for
consideration of approximately $1.8 billion.
Under the terms of the agreement, NRGY received approximately 14.2
million SPH common units; and SPH exchanged approximately $1.187 billion
of NRGY’s outstanding senior notes for $1.0 billion of new SPH senior
notes and cash paid to note holders tendering in the exchange. The
approximate $13.0 million of NRGY senior notes not exchanged for SPH
notes and cash will remain on NRGY’s balance sheet.
NRGY has agreed to distribute approximately 14.1 million of the SPH
common units it received to NRGY unitholders of record on a pro rata
basis at a future record date to be determined by the board of directors
of NRGY’s managing general partner, which management expects to occur
within the next 30-45 days. The distribution of the 14.1 million SPH
common units would represent a distribution ratio of approximately
0.1067 SPH units for each NRGY limited partner unit currently
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,
transportation, and wholesale 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