Company: SPH
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0000950170-25-104656
Chunk: 2

Company: SUBURBAN PROPANE PARTNERS LP
Filing Date: 2025-08-07
Form: 10-Q
Item: Part II, Item 1A
Chunk 2
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In addition to the other information set forth in this report, you should carefully consider the factors discussed in Item 1A. “Risk Factors” in the Partnership’s Annual Report on Form 10-K for the fiscal year ended September 28, 2024, as well as the following updates to our risk factors:

We face risks related to our current and future debt obligations that may limit our ability to make distributions to Unitholders, as well as our financial flexibility

As of June 28, 2025, our long-term debt consisted of $350.0 million in aggregate principal amount of 5.875% senior notes due March 1, 2027, $650.0 million in aggregate principal amount of 5.0% senior notes due June 1, 2031, $80.6 million in aggregate principal amount of 5.5% green bonds due October 1, 2028 through October 1, 2033 (“Green Bonds”) and $163.6 million outstanding under our $500.0 million senior secured revolving credit facility (the “Revolving Credit Facility”).  The payment of principal and interest on our debt will reduce the cash available to make distributions on our Common Units.  In addition, we will not be able to make any distributions to holders of our Common Units if there is, or after giving effect to such distribution, there would be, an event of default under the indentures governing the senior notes, the Revolving Credit Facility or the Green Bonds.  The amount of distributions that we may make to holders of our Common Units is limited by the senior notes, and the amount of distributions that the Operating Partnership may make to us is limited by our Revolving Credit Facility.  The amount of distributions that our subsidiary WOF SW GGP 1, LLC (“SuburbanRNG–Stanfield”) may make to us is limited by the Green Bonds.  The Revolving Credit Facility and the senior notes both contain various restrictive and affirmative covenants applicable to us, the Operating Partnership and its subsidiaries, respectively, including (i) restrictions on the incurrence of additional indebtedness, and (ii) restrictions on certain liens, investments, guarantees, loans, advances, payments, mergers, consolidations, distributions, sales of assets and other transactions.  The Revolving Credit Facility contains certain financial covenants: 

•requiring our consolidated interest coverage ratio, as defined therein, to be not less than 2.5 to 1.0