Suburban Propane Partners refinanced the $500 million senior secured credit facility of its operating partnership, Suburban Propane.

The new five-year revolving credit facility amends and restates the previous revolving credit facility dated March 3, 2016 to extend the maturity date from March 3, 2021, lower borrowing costs and amend certain affirmative and negative covenants, including increasing the maximum permitted consolidated leverage ratio from 5.50x to 5.75x.

As with the current facility, Suburban Propane, retains the ability to increase the facility size to $850 million.

The revolving credit facility will be used to provide liquidity for general corporate purposes; including working capital, capital expenditures and acquisitions. The bank syndicate supporting the new facility is comprised of 12 banks led by Bank of America Merrill Lynch, Wells Fargo Securities, BNP Paribas, Capital One, Citizens Bank, HSBC Bank USA, JP Morgan Chase Bank, TD Bank and Truist Bank, as joint lead arrangers, joint book runners and co-syndication agents.

Citibank was joint lead arranger and documentation agent with CoBank, ACB and People’s United Bank. Bank of America is serving as administrative agent.

“We are very pleased with the outcome of this opportunistic refinancing, which we have completed in advance of the expiration of our previous credit facility. This new facility improves our cost of capital, further extends our debt maturities and provides enhanced financial flexibility in support of our long-term growth initiatives. We are very appreciative of the support provided by our bank group, as the syndication was well oversubscribed,” said Chief Financial Officer and Chief Accounting Officer Michael Kuglin.

Headquartered in Whippany, NJ, Suburban has been in the customer service business since 1928 serving the energy needs of approximately 1 million residential, commercial, industrial and agricultural customers through 700 locations in 41 states.