CrossAmerica Partners has entered into a new five-year, $750 million revolving credit facility with a syndicate of lenders led by Citizens Bank. The new facility replaces the partnership’s previous $650 million revolving credit facility that was scheduled to expire April 25, 2020.
“We are pleased to finalize a new, five-year agreement with our banking partners. It provides us with financial flexibility and increases our borrowing capacity going forward,” said Evan Smith, CrossAmerica’s chief financial officer. “We appreciate the support that we received from our lenders during this process, as this facility extends our maturity profile, provides favorable rates and positions us to grow our business into the future.”
The new facility matures on April 1, 2024, and, subject to certain conditions, may be increased by an additional $300 million. Borrowings under the new facility bear interest, at CrossAmerica’s option, at a rate equal to the LIBOR plus a margin of 1.50% to 2.50% per annum or a base rate plus a margin of 0.50% to 1.50% per annum, depending on CrossAmerica’s consolidated leverage ratio. As of April 2nd, the applicable margin for LIBOR borrowings was 2.25%, and the applicable margin for base rate borrowings was 1.25%.
CrossAmerica will also be filing a Form 8-K with the Securities and Exchange Commission describing additional terms and conditions of the new agreement.