Amendment Increases Partnership's Acquisition Facility by $50 Million; Credit Agreement Extended Through April 2011
WALTHAM, Mass., April 26, 2007 /PRNewswire-FirstCall via COMTEX News Network/ -- Global Partners LP
(NYSE: GLP), one of the Northeast's largest wholesale distributors of
gasoline, distillates and residual oil to wholesalers, retailers and
commercial customers, today announced an expansion of its existing senior
secured credit agreement. The partnership and its 12-member lending group
have signed an amendment that increases the amount available to the
partnership for acquisitions from $35 million to $85 million. The amendment
also extends the term of the agreement through April 2011.
Global Partners plans to use a portion of the acquisition facility to
finance its purchase from ExxonMobil Oil Corporation of three refined product
terminals located in Albany and Newburgh, New York and Burlington, Vermont.
The acquisition, announced in March, is expected to close in the second
quarter of 2007.
"We look forward to completing the ExxonMobil transaction," said Eric
Slifka, president and chief executive officer of Global Partners. "The
additional capital available under the amended credit facility provides us
with further financial flexibility and reflects strong support from our
lending group."
Bank of America serves as agent for the credit agreement, which also
includes a $550 million facility to be used for working capital purposes and a
$15 million revolving credit facility to be used for general partnership
purposes. The other lenders are Citizens Bank of Massachusetts, Fortis Capital
Corp., JPMorgan Chase Bank, KeyBank, Societe Generale, Sovereign Bank,
Standard Chartered Bank, TD Banknorth Inc., Wachovia Bank, Webster Bank and
Wells Fargo Bank.
As previously announced, Global Partners also plans to finance the
acquisition of the ExxonMobil terminals with proceeds from the sale of its
shares of NYMEX Holdings and related NYMEX seats and the sale of $50 million
of Class B units. Kayne Anderson MLP Investment Company and funds managed by
Tortoise Capital Advisors, LLC and Fiduciary Asset Management, LLC are
purchasing the Class B units in a private placement.
About Global Partners LP
Global Partners LP, a publicly traded master limited partnership based in
Waltham, Massachusetts, owns, controls or has access to one of the largest
terminal networks of refined petroleum products in the Northeast. The
partnership is one of the largest wholesale distributors of gasoline,
distillates (such as home heating oil, diesel and kerosene) and residual oil
to wholesalers, retailers and commercial customers in the Northeast. Global
Partners LP trades on the New York Stock Exchange under the ticker symbol
"GLP." For additional information, please visit www.globalp.com.
Safe Harbor Statement
This news release contains certain "forward-looking statements" within the
meaning of the federal securities laws. These forward-looking statements are
identified as any statements that do not relate strictly to historical or
current facts and can generally be identified by the use of forward-looking
terminology including "will," "may," "believe," "expect," "anticipate,"
"estimate," "continue" or other similar words. Such statements may discuss
business prospects, new developments and future expectations or contain
projections of results of operations, financial condition and Global Partners
LP's ability to make distributions to unitholders. These statements are not
guarantees of performance. Although Global Partners LP believes these
forward-looking statements are based on reasonable assumptions, statements
made regarding future results are subject to a number of assumptions,
uncertainties and risks, many of which are beyond the control of Global
Partners LP, which may cause actual results to be materially different from
the forward-looking statements contained in this news release. For specific
risks and uncertainties that could cause actual results to differ materially
from forward-looking statements, please refer to Global Partners LP's Annual
Report on Form 10-K for the year ended December 31, 2006. All forward-
looking statements included in this news release and all subsequent written or
oral forward-looking statements attributable to Global Partners LP or persons
acting on its behalf are expressly qualified in their entirety by these
cautionary statements. The forward-looking statements speak only as of the
date made, and Global Partners LP undertakes no obligation to publicly update
or revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
SOURCE Global Partners LP
Thomas J. Hollister
Chief Operating Officer and Chief Financial Officer
or
Edward J. Faneuil
Executive Vice President, General Counsel and Secretary
both of Global Partners LP
1-781-894-8800
http://www.globalp.com