Business Context and Reporting Period
Company: Suburban Propane Partners, L.P.
Filing Type: Form 8-K (Current Report)
Date of Report: September 17, 2007
Event: Entry into a Material Definitive Agreement regarding the sale of a propane storage facility.
Key Financial Metrics
This filing reports a specific transaction rather than periodic financial performance. Consequently, revenue, profit, cash flow, margins, debt, and liquidity metrics for the reporting period are not provided in this document.
- Transaction Value: $55 million (subject to certain adjustments).
- Asset Sold: Propane storage facility and related pipeline near Tirzah, South Carolina.
- Buyer: Plains LPG Services, L.P. ("Plains").
Material Changes and Transaction Details
On September 17, 2007, Suburban Propane, L.P. and its subsidiary Suburban Pipeline LLC entered into a definitive Purchase and Sale Agreement to sell the Tirzah, South Carolina facility to Plains. Key terms include:
- Closing Timeline: Expected within 30 days, subject to closing conditions.
- Non-Competition: The Partnership agreed not to engage in the wholesale propane business in South Carolina and neighboring states for five years, with certain exceptions.
- Storage Rights: Simultaneously, a Propane Storage Agreement was executed granting the Partnership the right to store up to 7 million gallons of propane at the facility for at least 10 years post-closing.
Outlook, Risks, and Management Commentary
The filing indicates the transaction is expected to close within 30 days. The primary risk noted is the satisfaction of certain closing conditions required to finalize the sale. Management has furnished the definitive agreements and a press release as exhibits to this report.
Investor Verification Checklist
- Verify the final closing date of the $55 million transaction.
- Confirm the specific "certain adjustments" to the purchase price mentioned in the agreement.
- Review the "certain exceptions" to the five-year non-compete clause in South Carolina and neighboring states.
- Assess the impact of the 10-year storage agreement on future operational costs and capacity.
- Check subsequent filings for the actual cash proceeds recognized upon closing.