7-Eleven plans bridge loan for Marathon convenience-store business

By Wendy Van Sickle

Columbus, Ohio, Aug. 3 – Seven & i Holdings Co., Ltd. and 7-Eleven, Inc. plan to carry out debt financing, including a bridge loan to acquire the shares and other interests of the companies operating the convenience store and fuel retail businesses of Marathon Petroleum Corp. mainly under the Speedway brand, according to a notice.

It is expected that 7-Eleven’s debt-to-EBITDA ratio will temporarily increase and that financial indicators, such as the equity ratio, will temporarily decrease.

After completion of the acquisition, the company’s capacity to generate cash flow is expected to improve, and the company plans to use consolidated free cash flow to repay the obligations.

7-Eleven aims to maintain a financial condition worthy of an A credit rating two years following the closing by limiting its debt-to-EBITDA ratio to less than 3.

7-Eleven said it will announce concrete methods for fund raising as soon as they have been determined and that it does not plan to raise funds through the issuance of new shares.

Seven & i Holdings is a Tokyo-based retail group that operates businesses including convenience stores, department stores and supermarkets. Marathon Petroleum is a crude oil refiner based in Findlay, Ohio.

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