Global Partners to reduce credit agreement debt via new preferreds

By Sarah Lizee

Olympia, Wash., July 31 – Global Partners LP plans to reduce debt under its credit agreement using proceeds from an offering of series A fixed-to-floating rate cumulative redeemable perpetual preferreds, according to a 424B3 filing with the Securities and Exchange Commission.

As of March 31, the credit agreement had $547.7 million of borrowings outstanding, consisting of $351.7 million outstanding under the working capital revolving credit facility and $196 million outstanding under the revolving credit facility. The company also had $66.8 million of outstanding letters of credit.

The working capital revolver bears interest at Libor plus 200 basis points to 250 bps, depending on use. The revolver bears interest at Libor plus 200 bps to 300 bps, depending on the combined total leverage ratio.

The average interest rate for the credit agreement was 3.9% for the three months ended March 31.

The credit agreement will mature on April 30, 2020.

On July 17, Global Partners financed the Champlain Oil Co., Inc. acquisition with about $134 million of borrowings under the revolver, and on July 24, it financed the Cheshire Oil Co., LLC acquisition with about $32 million of borrowings under the revolver.

Global Partners is a Waltham, Mass.-based midstream logistics and marketing company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.