Insider filing report for Changes in Beneficial Ownership
- Schedule 13G & 13D forms are used to report a party's ownership of stock which exceeds 5% of a company's total stock issue.
- Schedule 13G is a shorter version of Schedule 13D with fewer reporting requirements.
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 8)*
Sprague Resources
LP
(Name of Issuer)
Common Units Representing Limited Partner
Interests
(Title of Class of Securities)
849343 108
(CUSIP Number)
Paul A. Scoff
185 International Drive
Portsmouth, NH 03801
(800) 255-1560
(Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications)
April 20, 2021
(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of §§ 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box. ¨
| 1 | Name of Reporting Person
Sprague Resources Holdings LLC | ||
| 2 | Check the appropriate box if a member of a group* (a)(b) | ||
| 3 | SEC Use Only | ||
| 4 | Source of Funds
OO | ||
| 5 | Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e) | ||
| 6 | Citizenship or Place of Organization
Delaware | ||
| Number
of Shares Beneficially Owned by Each Reporting Person With |
7 | Sole Voting Power:
0 | |
| 8 | Shared Voting Power:
16,058,484 common units* | ||
| 9 | Sole Dispositive Power:
0 | ||
| 10 | Shared Dispositive Power:
16,058,484 common units* | ||
| 11 | Aggregate Amount Beneficially Owned by each Reporting Person:
16,058,484 common units* | ||
| 12 | Check if the Aggregate Amount in Row (11) Excludes Certain Shares | ||
| 13 | Percent of Class Represented by Amount in Row (11)
61.2%** | ||
| 14 | Type of Reporting Person
HC; OO | ||
| * | Sprague Resources Holdings LLC also owns all of the incentive distribution rights (which represent the right to receive increasing percentages of quarterly distributions in excess of specified amounts). Sprague Resources Holdings LLC may also be deemed to be the indirect beneficial owner of a non-economic general partner interest in Sprague Resources LP. |
| ** | Based on a total of 26,226,255 common units outstanding as of April 20, 2021. |
2
| 1 | Name of Reporting Person
Axel Johnson Inc. | ||
| 2 | Check the appropriate box if a member of a group* (a)(b) | ||
| 3 | SEC Use Only | ||
| 4 | Source of Funds
OO | ||
| 5 | Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e) | ||
| 6 | Citizenship or Place of Organization
Delaware | ||
| Number
of Shares Beneficially Owned by Each Reporting Person With |
7 | Sole Voting Power:
0 | |
| 8 | Shared Voting Power:
16,058,484 common units* | ||
| 9 | Sole Dispositive Power:
0 | ||
| 10 | Shared Dispositive Power:
16,058,484 common units* | ||
| 11 | Aggregate Amount Beneficially Owned by each Reporting Person:
16,058,484 common units* | ||
| 12 | Check if the Aggregate Amount in Row (11) Excludes Certain Shares | ||
| 13 | Percent of Class Represented by Amount in Row (11)
61.2%** | ||
| 14 | Type of Reporting Person
CO | ||
| * | Sprague Resources Holdings LLC is the record holder of 16,058,484 common units. Axel Johnson Inc. may also be deemed to be the indirect beneficial owner of (i) all of the incentive distribution rights (which represent the right to receive increasing percentages of quarterly distributions in excess of specified amounts) and (ii) a non-economic general partner interest in Sprague Resources LP. |
| ** | Based on a total of 26,226,255 common units outstanding as of April 20, 2021. |
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| 1 | Name of Reporting Person
Lexa International Corporation | ||
| 2 | Check the appropriate box if a member of a group* (a)(b) | ||
| 3 | SEC Use Only | ||
| 4 | Source of Funds
OO | ||
| 5 | Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e) | ||
| 6 | Citizenship or Place of Organization
Delaware | ||
| Number
of Shares Beneficially Owned by Each Reporting Person With |
7 | Sole Voting Power:
0 | |
| 8 | Shared Voting Power:
16,058,484 common units* | ||
| 9 | Sole Dispositive Power:
0 | ||
| 10 | Shared Dispositive Power:
16,058,484 common units* | ||
| 11 | Aggregate Amount Beneficially Owned by each Reporting Person:
16,058,484 common units* | ||
| 12 | Check if the Aggregate Amount in Row (11) Excludes Certain Shares | ||
| 13 | Percent of Class Represented by Amount in Row (11)
61.2%** | ||
| 14 | Type of Reporting Person
CO | ||
| * | Sprague Resources Holdings LLC is the record holder of 16,058,484 common units. Lexa International Corporation may also be deemed to be the indirect beneficial owner of (i) all of the incentive distribution rights (which represent the right to receive increasing percentages of quarterly distributions in excess of specified amounts) and (ii) a non-economic general partner interest in Sprague Resources LP. |
| ** | Based on a total of 26,226,255 common units outstanding as of April 20, 2021. |
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| 1 | Name of Reporting Person
Antonia Ax:son Johnson | ||
| 2 | Check the appropriate box if a member of a group* (a)(b) | ||
| 3 | SEC Use Only | ||
| 4 | Source of Funds
OO | ||
| 5 | Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e) | ||
| 6 | Citizenship or Place of Organization
Sweden | ||
| Number
of Shares Beneficially Owned by Each Reporting Person With |
7 | Sole Voting Power:
0 | |
| 8 | Shared Voting Power:
16,058,484 common units* | ||
| 9 | Sole Dispositive Power:
0 | ||
| 10 | Shared Dispositive Power:
16,058,484 common units* | ||
| 11 | Aggregate Amount Beneficially Owned by each Reporting Person:
16,058,484 common units* | ||
| 12 | Check if the Aggregate Amount in Row (11) Excludes Certain Shares | ||
| 13 | Percent of Class Represented by Amount in Row (11)
61.2%** | ||
| 14 | Type of Reporting Person
IN | ||
| * | Sprague Resources Holdings LLC is the record holder of 16,058,484 common units. Antonia Ax:son Johnson may also be deemed to be the indirect beneficial owner of (i) all of the incentive distribution rights (which represent the right to receive increasing percentages of quarterly distributions in excess of specified amounts) and (ii) a non-economic general partner interest in Sprague Resources LP. |
| ** | Based on a total of 26,226,255 common units outstanding as of April 20, 2021. |
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SCHEDULE 13D
The Reporting Persons named in Item 2 below are hereby jointly filing this Amendment No. 8 to Schedule 13D (this “Amendment”) to report that on April 20, 2021, Sprague Resources Holdings LLC, a Delaware limited liability company (“Sprague Holdings”) entered into a purchase agreement (the “Purchase Agreement”) with Sprague HP Holdings, LLC, a Delaware lim ited liability company (“Buyer”), and, solely for purposes of Section 11.14 thereof, Hartree Partners, LP, a Delaware limited partnership (“Hartree”), pursuant to which Sprague Holdings will sell to Buyer all of Sprague Holdings’ interest in Sprague Resources GP LLC (the “General Partner”), the general partner of Sprague Resources LP (the “Partnership”), all of the common units representing limited partner interests (“Common Units”) that Sprague Holdings owns in the Partnership and all of the Partnership’s Incentive Distribution Rights, as defined in the First Amended and Restated Agreement of Limited Partnership of the Partnership (as amended, the “Partnership Agreement”). This Amendment amends and supplements the information provided in the Schedule 13D filed with the Securities and Exchange Commission (the “Commission”) on November 12, 2013 (such Schedule 13D, as amended and supplemented by Amendment No. 7, filed on March 8, 2021, Amendment No. 6, filed on February 11, 2021, Amendment No. 5, filed on June 5, 2020, Amendment No. 4, filed on June 4, 2020, Amendment No. 3, filed on March 27, 2020, Amendment No. 2, filed on March 23, 2017, and Amendment No. 1, filed on December 12, 2014, the “Original Schedule 13D”).
Item 1. Security and Partnership
No modification is made to Item 1 of the Original Schedule 13D.
Item 2. Identity and Background
Item 2 of the Original Schedule 13D is hereby amended and restated in its entirety as follows:
| (a) | This Statement is filed by: |
| i. | Sprague Holdings; |
| ii. | Axel Johnson Inc., a Delaware corporation (“Axel Johnson”); |
| iii. | Lexa International Corporation, a Delaware corporation (“Lexa”); and |
| iv. | Antonia Ax:son Johnson, a citizen of Sweden (“Ms. Johnson” and, together with Sprague Holdings, Axel Johnson and Lexa, the “Reporting Persons”). |
All disclosures herein with respect to any Reporting Person are made only by such Reporting Person. Any disclosures herein with respect to persons other than the Reporting Persons are made on information and belief after making inquiry to the appropriate party.
Sprague Holdings is a wholly-owned subsidiary of Axel Johnson. Axel Johnson is a wholly-owned subsidiary of Lexa. Lexa, through certain non-U.S. entities, is controlled by Ms. Johnson. Sprague Holdings also owns 100% of the equity interests of the General Partner, which is the general partner of the Partnership, and all of the Incentive Distribution Rights in the Partnership.
Sprague Holdings is a limited partner of the Partnership and the record holder of 16,058,484 common units of the Partnership, representing an aggregate 61.2% limited partner interest in the Partnership.
(b) The business address of Sprague Holdings is 185 International Drive, Portsmouth, NH 03801. The business address of Axel Johnson is 155 Spring Street, 6th Floor, New York, NY 10012. The business address of Lexa is 2410 Old Ivy Road, Suite 300, Charlottesville, VA 22903. The business address of Ms. Johnson is c/o Axel Johnson Inc., 155 Spring Street, 6th Floor, New York, NY 10012.
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| (c) | The principal business of: |
| i. | Sprague Holdings is to hold equity interests in the Partnership and the General Partner; |
| ii. | Axel Johnson is to hold equity interests in Sprague Holdings and other entities; |
| iii. | Lexa is to hold equity interests in Axel Johnson and other entities; and |
| iv. | Ms. Johnson is to serve as Chairman of Axel Johnson Group. |
| (d) | None of the Reporting Persons has, during the last five years, been convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors). |
(e) None of the Reporting Persons has, during the last five years, been a party to a civil proceeding of a judicial or administrative body of competent jurisdiction and, as a result of such proceeding, was or is subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, federal or state securities laws or finding any violation with respect to such laws.
In accordance with the provisions of General Instruction C to Schedule 13D, certain information concerning the executive officers and directors of the Reporting Persons and persons controlling the Reporting Persons, as applicable (collectively, the “Covered Persons”), required by Item 2 of Schedule 13D is provided on Schedule I and is incorporated by reference herein. To the Reporting Persons’ knowledge, none of the Covered Persons listed on Schedule 1 as a director or executive officer of Sprague Holdings, Axel Johnson or Lexa has been, during the last five years, (i) convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors), or (ii) a party to a civil proceeding of a judicial or administrative body of competent jurisdiction and, as a result of such proceeding, was or is subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, federal or state securities laws or finding any violation with respect to such laws.
Item 3. Sources and Amount of Funds or Other Consideration
No modification is made to Item 3 of the Original Schedule 13D.
Item 4. Purpose of Transaction
Item 4 of the Original Schedule 13D is hereby amended by adding the following information:
On April 20, 2021, Sprague Holdings entered into the Purchase Agreement with Buyer and, solely for purposes of Section 11.14 thereof, Hartree, pursuant to which Sprague Holdings will sell to Buyer all of Sprague Holdings’ interest in the General Partner, all of the Common Units that Sprague Holdings owns in the Partnership and all of the Partnership’s Incentive Distribution Rights. Additionally, the Purchase Agreement contemplates certain potential changes to the directors of the General Partner and the Partnership’s subsidiaries, which would be effective as of the closing of the transaction contemplated by the Purchase Agreement.
Subject to the terms and conditions of the Purchase Agreement, the aggregate consideration to be paid to Sprague Holdings by Buyer at the closing shall be $290,000,000, consisting of (a) $264,964,986 attributable to the purchased Common Units, at a price of $16.50 per Commo n Unit, and (b) $25,035,014 attributable to the interest in the General Partner and the Incentive Distribution Rights, collectively.
The foregoing description of the Purchase Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Purchase Agreement, which is filed as Exhibit K hereto and is incorporated by reference in its entirety into this Item 4.
Item 5. Interest in Securities of the Issuer
Item 5 of the Original Schedule 13D is hereby amended and restated in its entirety as follows:
(a) - (b) The aggregate number and percentage of shares of units beneficially owned by the Reporting Persons on the basis of a total of 26,226,255 units issued and outstanding as of April 20, 2021 are as follows:
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Sprague Holdings
(a) Amount beneficially owned: 16,058,484 units Percentage: 61.2%
(b) Number of shares to which the Reporting Person has:
| i. | Sole power to vote or to direct the vote: 0 |
| ii. | Shared power to vote or to direct the vote: 16,058,484 units |
| iii. | Sole power to dispose or to direct the disposition of: 0 |
| iv. | Shared power to dispose or to direct the disposition of: 16,058,484 units |
Axel Johnson
(a) Amount beneficially owned: 16,058,484 units Percentage: 61.2%
(b) Number of shares to which the Reporting Person has:
| i. | Sole power to vote or to direct the vote: 0 |
| ii. | Shared power to vote or to direct the vote: 16,058,484 units |
| iii. | Sole power to dispose or to direct the disposition of: 0 |
| iv. | Shared power to dispose or to direct the disposition of: 16,058,484 units |
Lexa
(a) Amount beneficially owned: 16,058,484 units Percentage: 61.2%
(b) Number of shares to which the Reporting Person has:
| i. | Sole power to vote or to direct the vote: 0 |
| ii. | Shared power to vote or to direct the vote: 16,058,484 units |
| iii. | Sole power to dispose or to direct the disposition of: 0 |
| iv. | Shared power to dispose or to direct the disposition of: 16,058,484 units |
Ms. Johnson
(a) Amount beneficially owned: 16,058,484 units Percentage: 61.2%
(b) Number of shares to which the Reporting Person has:
| i. | Sole power to vote or to direct the vote: 0 |
| ii. | Shared power to vote or to direct the vote: 16,058,484 units |
| iii. | Sole power to dispose or to direct the disposition of: 0 |
| iv. | Shared power to dispose or to direct the disposition of: 16,058,484 units |
(c) Except as described in Item 4 above or elsewhere in this Statement, none of the Reporting Persons or, to the Reporting Persons’ knowledge, the Covered Persons has effected any transactions in the common units during the past 60 days, except for transactions by the Covered Persons pursuant to pre-arranged trading plans under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended, and reported on Form 4.
(d) The Reporting Persons have the right to receive distributions from, and the proceeds from the sale of, the respective common units reported by such persons on the cover pages of this Statement and in this Item 5. Except for the foregoing and the cash distributions described in Item 6 below, no other person is known by the Reporting Persons to have the right to receive or the power to direct the receipt of distributions from, or the proceeds from the sale of, common units beneficially owned by the Reporting Persons or, to the Reporting Persons’ knowledge, the Covered Persons.
(e) Not applicable.
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Item 6. Contracts, Arrangements, Understandings or Relationships with Respect to Securities of the Issuer
The information set forth in Item 4 above is incorporated by reference into this Item 6.
Item 7. Material to be Filed as Exhibits
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SIGNATURES
After reasonable inquiry and to the best of their knowledge and belief, the undersigned certify that the information set forth in this statement is true, complete and correct.
Date: April 20, 2021
| SPRAGUE RESOURCES HOLDINGS LLC | ||
| By: | /s/ Paul A. Scoff | |
| Name: | Paul A. Scoff | |
| Title: | Vice President, General Counsel, Chief Compliance Officer and Secretary | |
| AXEL JOHNSON INC. | ||
| By: | /s/ Paul A. Scoff | |
| Name: | Paul A. Scoff | |
| Title: | Attorney-in-fact | |
| LEXA INTERNATIONAL CORPORATION | ||
| By: | /s/ Paul A. Scoff | |
| Name: | Paul A. Scoff | |
| Title: | Attorney-in-fact | |
| ANTONIA AX:SON JOHNSON | ||
| By: | /s/ Paul A. Scoff | |
| Name: | Paul A. Scoff | |
| Title: | Attorney-in-fact | |
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