Couche-Tard to use new term loan, draw on credit facilities to buy CST

By Tali Rackner

Norfolk, Va., Aug. 22 – Alimentation Couche-Tard Inc. plans to use existing credit facilities and a new term loan, along with available cash, to finance its merger with and acquisition of CST Brands, Inc., according to a press release.

Couche-Tard will acquire all of the shares of CST for $48.53 per share in cash, representing a total enterprise value of about $4.4 billion, including the assumption of net debt.

The transaction is expected to close in early 2017.

The company will then sell certain Canadian assets of CST to Parkland Fuel Corp for about $750 million.

Alimentation Couche-Tard is a Quebec-based convenience store operator. CST is San Antonio-based independent North American retailer of transportation fuels and convenience merchandise.

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