GLOBAL PARTNERS LP 8-K 2016
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On May 24, 2016, Global Partners LP (the “Partnership”) and its wholly owned subsidiaries Global Companies LLC (“Global Companies”), Global Montello Group Corp. (“Montello”) and Alliance Energy LLC (“Alliance”), and Alliance’s wholly owned subsidiary, Bursaw Oil LLC (“Bursaw”, and collectively with the Partnership, Global Companies, Montello and Alliance, the “Seller”), as Seller, entered into a Real Estate Purchase and Sale Contract, as subsequently amended, with a premier institutional real estate investor, as Buyer, for a sale and purchase transaction relating to thirty-three (33) gasoline stations and convenience stores located in Connecticut, Maine, Massachusetts, New Hampshire and Rhode Island (the “Sale Leaseback Sites”) for an aggregate total purchase price of $67,712,857.00 (the “P&S Contract”), subject to customary due diligence and closing conditions. Under the P&S Contract, the Partnership and Montello, collectively, as Tenant, and Buyer, as Landlord, further agreed to enter into a Unitary Master Lease Agreement with respect to the Sale Leaseback Sites simultaneously with the closing of the P&S Contract (such Unitary Master Lease Agreement, together with the P&S Contract, the “Sale Leaseback Transaction”). The Master Unitary Lease Agreement provides for an initial term of fifteen years, with an option to renew for successive periods of ten years, five years and five years beyond the initial term.
On June 29, 2016, the Sale Leaseback Transaction closed with respect to thirty (30) Sale Leaseback Sites for an aggregate total purchase price of $63,461,998.00. The proceeds from the Sale Leaseback Transaction were used to reduce indebtedness outstanding under the Partnership’s revolving credit facility. As a result of the Sale Leaseback Transaction, the Partnership expects to incur additional rent expense of approximately $4.4 million for the 12 months ending June 30, 2017.
* Furnished herewith.
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
* Furnished herewith.