Suburban Propane Partners (NYSE:SPH) is expanding its capital base with an issue of its common units. The company has floated a 2.7 million-strong issue of the units in an underwritten public offering at a price of $48.16 apiece. Additionally, SPP has granted its underwriters a 30-day purchase option for up to an additional 405,000 units.

The firm said it plans to use the estimated $124.6 million in proceeds from the issue to pay down debt, as well as for working capital and "general partnership purposes."

Bank of America's Merrill Lynch, Citigroup, JPMorgan Chase unit J.P. Morgan, Credit Suisse, Goldman Sachs, Raymond James, and the Securities divisions of Wells Fargo and Deutsche Bank are the joint book-running managers of the offering. SPP expects that the delivery of the new units will be effected on May 17.