GLOBAL PARTNERS LP (NASDAQ:GLP) Files An 8-K Entry into a Material Definitive Agreement

GLOBAL PARTNERS LP (NASDAQ:GLP) Files An 8-K Entry into a Material Definitive Agreement

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Item 1.01. Entry into a Material Definitive Agreement

On December 21, 2016, Global Partners LP (the “Partnership”)
and certain of its subsidiaries entered into the Seventh
Amendment to the Second Amended and Restated Credit Agreement
(the “Seventh Amendment”), which amends the Second Amended and
Restated Credit Agreement dated December 16, 2013 (as amended,
the “Credit Agreement”). The Seventh Amendment amends certain
terms of the Credit Agreement to: (i) permit the use of
borrowings to make the Discounted Lease Termination Payment in an
amount not to exceed $62,000,000 and the Lease Termination
Expense Payment in an amount not to exceed $15,000,000 (each as
defined therein); (ii) for covenant calculation purposes, adjust
the calculation of EBITDA as defined in the Credit Agreement to
provide for an addback of the one-time non-recurring cash expense
not to exceed $77,000,000 incurred in connection with the Lease
Termination (as defined therein); and (iii) accelerate the
step-down in the combined total leverage ratio from 5.50 times to
5.00 times (5x) effective with the fiscal quarter ending December
31, 2016.
All other material terms of the Credit Agreement remain the same
as disclosed in the Partnership’s Quarterly Report on Form 10-Q
for the quarter ended September 30, 2016.
The foregoing description of the Seventh Amendment does not
purport to be complete and is qualified in its entirety by
reference to the Seventh Amendment, a copy of which is filed as
Exhibit 10.1 hereto and incorporated herein by reference.
Item 8.01. Other Events
On December 21, 2016, Global Companies LLC (“Global”), an
indirect wholly owned subsidiary of the Partnership, elected to
voluntarily terminate early (effective December 31, 2016) that
certain Master Sublease Confirmation (the “Master
Confirmation”) by and between the Master Confirmation
counterparty (the “Counterparty”) and Global with respect to
certain railcars that were subleased by Global from the
Counterparty and pay a mutually agreed termination payment
comprised of the Discounted Lease Termination Payment plus the
Lease Termination Expense Payment. In the fourth quarter of 2016,
the Partnership expects to incur a one-time expense of
approximately $81,000,000 associated with the early termination.
In addition to the Discounted Lease Termination Payment, the
one-time expense includes costs for future railcar storage,
freight, cleaning and inspection services as well as certain
non-cash accounting adjustments associated with the early
termination. Separately, Global entered into a fleet management
services agreement (effective January 1, 2017) with the
Counterparty, to which Global will provide future railcar
storage, freight, cleaning, inspection, insurance, and other
services on behalf of the Counterparty.
Item 9.01. Financial Statements and Exhibits
(d)
Exhibit
10.1
Seventh Amendment to Second Amended and Restated Credit
Agreement dated December 21, 2016.


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