Partnership Expands Credit Facility and Strengthens Liquidity Position
WALTHAM, Mass., Jul 21, 2008 (BUSINESS WIRE) -- Global Partners LP (NYSE: GLP) today announced that the Board of
Directors of its general partner, Global GP LLC, has declared a
quarterly cash distribution of $0.4875 per unit ($1.95 per unit on an
annualized basis) on all of its outstanding common and subordinated
units for the period from April 1, 2008 through June 30, 2008. The
distribution will be paid August 14, 2008 to unitholders of record as
of the close of business August 5, 2008.
Global Partners also announced today the signing of an amendment
to its working capital revolving credit facility. The amendment
increases the partnership's borrowing capacity with its 13-member bank
group under the partnership's working capital revolving credit
facility by $100 million to $650 million. The amendment also increases
the existing accordion feature by an additional $100 million to a
total of $200 million. Global Partners has undrawn committed
availability of approximately $225 million under this facility prior
to any request under the accordion feature. The partnership's credit
facilities will mature in April 2011.
In addition, in response to a number of recent investor inquiries
regarding SemGroup Energy Partners L.P. and liquidity within the
master limited partnership sector, Global Partners President and Chief
Executive Officer Eric Slifka issued the following statement:
-- Global Partners has conducted a thorough review of its
business and believes that it has no credit exposure or
involvement with SemGroup Energy Partners or its parent
company, SemGroup, L.P.
-- Global Partners has expanded its credit facility and
strengthened its liquidity position.
-- Through the use of regulated exchanges or derivatives, Global
Partners maintains a position that is substantially balanced
between purchased volumes and sales volumes. A key component
of Global Partners' business model is to purchase products for
its distribution network and customer use. Global Partners
enters into futures contracts to minimize the impact of market
fluctuations on its purchase and forward fixed price sales of
refined petroleum products and/or protect margins relative to
the partnership's commitments.
-- Global Partners utilizes the New York Mercantile Exchange
(NYMEX), which is a regulated exchange for energy products
that it trades, to reduce potential delivery and supply risks.
Generally, the partnership's practice is to close all NYMEX
positions rather than make or receive physical deliveries. In
addition, all NYMEX margin positions are settled daily.
-- Global Partners enters into derivative agreements with
counterparties that the partnership believes have a strong
credit profile.
-- The partnership maintains rigorous credit approval procedures
that include intensive monitoring processes. As a result of
these practices, credit losses over the past five years
averaged less than $300,000 per year.
-- Global Partners accounts for its derivatives in accordance
with SFAS No. 133, "Accounting for Derivative Instruments and
Hedging Activities," as amended ("SFAS No. 133"). SFAS No. 133
establishes accounting and reporting standards for derivative
instruments and hedging activities and requires that an entity
recognize derivatives as either assets or liabilities on the
balance sheet and measure the instruments at fair value.
Changes in the fair value of the derivative are to be
recognized currently in earnings, unless specific hedge
accounting criteria are met.
About Global Partners LP
Global Partners LP, a publicly traded master limited partnership
based in Waltham, Massachusetts, owns, controls and 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 region. Global Partners LP, a FORTUNE
500(R) company, 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, goals, 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, 2007 and
subsequent filings the partnership makes with the Securities and
Exchange Commission. 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
Global Partners LP
Thomas J. Hollister, 781-894-8800
Chief Operating Officer and
Chief Financial Officer
or
Edward Faneuil, 781-894-8800
Executive Vice President,
General Counsel and Secretary