SEC Filing Summary: Suburban Propane Partners LP (8-K)
Business Context and Reporting Period
This Form 8-K was filed on May 27, 2008, by Suburban Propane Partners, L.P. The report details a specific corporate finance event involving the company's wholly owned operating subsidiary, Suburban Propane, L.P. (the "Operating Partnership").
Key Financial Metrics and Obligations
The filing discloses the creation of a new direct financial obligation:
- Instrument: Master Note Agreement with Citibank, N.A.
- Facility Type: Line of credit.
- Maximum Advance: $20 million aggregate at any one time.
- Term: Available between December 1, 2008, and April 1, 2009.
- Repayment: Payable in full on or before April 1, 2009.
- Costs: Interest applies to advances; no upfront fee is associated with the line of credit.
- Authorization: Structured under the Third Amended and Restated Credit Agreement (dated October 20, 2004, as amended).
The filing text does not provide current revenue, profit, cash flow, margin, or total debt figures, as this report focuses solely on the new credit facility.
Material Changes and Purpose
The Operating Partnership entered into this agreement to secure additional financial flexibility for general corporate working capital purposes. This facility is intended to support operations during periods of peak demand. The lender retains sole discretion to decline any requested advance.
Outlook, Risks, and Management Commentary
Management indicates the facility is a precautionary measure for seasonal peak demand. A key contingency is that the line of credit is non-committed; Citibank, N.A. is not obligated to fund any request and may decline advances at its sole discretion.
Key Facts for Investor Verification
- Verify the specific interest rate terms applicable to advances under the Master Note Agreement.
- Confirm the company's current liquidity position and whether this $20 million facility is expected to be drawn upon.
- Review the covenants within the underlying Third Amended and Restated Credit Agreement that govern this facility.
- Monitor the company's cash flow needs during the upcoming peak demand season (December 2008 to April 2009).