Wachovia Securities is expected to come to market with a $125 million refinancing deal for propane marketer Suburban Propane Partners. The credit will include a $75 million revolver and a $50 million term loan, according to a buysider, who could not provide details on pricing or the timing of the deal. The Whippany, N.J.-based company faces a maturing revolver for the same amount that expires May 31 and carries pricing in the range of LIBOR plus 11/2%. Lenders on the maturing deal include FleetBoston Securities, Bank of New York and ABN Amro.
Suburban had $46 million tapped on the revolver as of last December, according to a company filing. The credit is broken down into a $75 million working capital facility and a $50 million acquisition facility. The deal includes covenants requiring a leverage ratio less than five times and an interest coverage ratio in excess of 2.5 times. Wachovia bankers and Robert Plante, v.p. of finance at Suburban Propane did not return calls, while a company official declined to comment.