Business Context and Reporting Period
Company: Suburban Propane Partners, L.P.
Filing Type: Form 8-K (Current Report)
Date: October 21, 2004
Context: The filing reports the issuance of a press release detailing Fiscal 2004 Fourth Quarter and Year-End financial results and a distribution declaration. It also announces the amendment of the company's credit agreement.
Key Financial Metrics
The filing text references the release of Fiscal 2004 Fourth Quarter and Year-End results but does not contain specific numerical values for revenue, profit, cash flow, margins, or debt levels within the body of the 8-K. These figures are contained in the attached Press Release (Exhibit 99.1).
- Non-GAAP Measures: The company utilizes EBITDA and net income excluding unrealized gains/losses on derivative instruments (SFAS No. 133) to assist investors in assessing liquidity and debt service capabilities.
- Debt Facility: A new credit agreement was established with a total availability of $150 million.
Material Changes
Amendment of Credit Agreement: On October 20, 2004, the Operating Partnership completed the Third Amended and Restated Credit Agreement, replacing the previous facility.
- Capacity Increase: Total credit availability increased to $150 million (up from the previous $75 million working capital and $25 million acquisition facilities).
- Structure: The new agreement includes a $75 million revolving working capital facility (with $15 million available for letters of credit) and a separate $75 million letter of credit facility.
- Term Extension: The agreement expires on October 20, 2008, extending the maturity date from the previous May 2006 expiration.
- Costs: Interest rates are based on LIBOR or Prime plus an applicable margin, or the Federal Funds rate plus 0.5%. An annual facility fee ranges from 0.375% to 0.50%.
Guidance, Outlook, and Risks
Management Commentary: Management states that non-GAAP measures are provided to facilitate year-over-year liquidity comparisons and to evaluate the ability to meet debt service obligations and pay quarterly distributions. These measures are also required by senior note and revolving credit agreements for leverage and interest coverage ratio calculations.
Risks and Contingencies: The filing notes that the press release contains non-GAAP financial measures and that a reconciliation to the most comparable GAAP measure (cash flow from operating activities) is provided in the exhibit. No specific new risks or contingencies are detailed in the text of this 8-K beyond standard credit agreement terms.
Investor Verification Checklist
- Review Exhibit 99.1 (Press Release) for specific Fiscal 2004 Q4 and Year-End revenue, net income, and EBITDA figures.
- Verify the reconciliation of EBITDA to cash flow provided by operating activities in the press release.
- Confirm the specific quarterly distribution amount declared in the press release.
- Assess the impact of the new $150 million credit facility on the company's leverage ratios compared to the prior agreement.