CrossAmerica Partners entered into an amended and restated five-year revolving credit facility agreement with a syndicate of lenders led by Citizens Bank. The amended facility provides borrowing capacity up to $925 million, an increase from the previous revolving credit facility capacity of $750 million. As part of the amendment and restatement, proceeds from the amended facility were used to repay all outstanding balances on the $200 million credit facility entered into by a subsidiary of the partnership in 2021 to finance its acquisition of assets from 7-Eleven and Speedway.
“We are pleased to finalize this amendment and restatement of our revolving credit facility with our banking partners,” Charles Nifong, CEO and president at CrossAmerica, said. “This amended facility extends our maturity profile, allows us to consolidate our borrowings into one credit facility and provides us with the financial flexibility to continue to pursue our strategic initiatives into the future. We appreciate the support we received from our lenders during this process.”
The amended facility matures on March 31, 2028, and, subject to certain conditions, may be increased by an additional $350 million. Borrowings under the amended facility will bear interest, at the partnership’s option, at a rate equal to the secured overnight financing rate (SOFR) plus a margin ranging from 1.75% to 2.75% per annum plus a customary credit spread adjustment or an alternative base rate plus a margin ranging from 0.75% to 1.75% per annum, depending on the partnership’s consolidated leverage ratio. Until the partnership delivers a compliance certificate for the fiscal quarter ending June 30, 2023, the applicable margin for SOFR and alternative base rate loans will be 2.25% and 1.25%, respectively, and the commitment fee rate will be 0.35%.
