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WALTHAM, MA – In a significant financial restructuring, Global Partners LP (NYSE:GLP), a leader in the wholesale distribution of petroleum and related products with annual revenues of $17.2 billion, announced the extension of its credit facility maturity date and other key amendments to its existing agreements. This move is aimed at strengthening the company’s financial position and providing greater flexibility in its operations. According to InvestingPro data, the company has demonstrated strong momentum with a 24% return over the past six months, though analysts note it currently trades above its Fair Value.
On Monday, Global Partners LP, along with its subsidiaries, entered into the Eleventh Amendment to its credit agreement, which notably extends the maturity date of the credit facility from May 2, 2026, to March 20, 2028. This extension provides the company with a longer horizon to manage its substantial debt obligations, which InvestingPro data shows currently stand at $2.02 billion, representing a debt-to-equity ratio of 3.16x.
The amendment also includes several other changes. It removes certain properties, specifically convenience store and related retail fuel facility properties, from the collateral while maintaining a negative pledge to the lenders. Furthermore, the amendment adjusts the Aggregate Working Capital Commitment to $1.0 billion and the Aggregate Revolver Commitment to $500.0 million.
As part of the restructuring, there has been a reassignment of portions of certain lenders’ Loans and Commitments to other new or existing lenders willing to assume these financial instruments.
The Credit Agreement, as amended through the Eleventh Amendment, retains all other material terms as disclosed in the company’s Annual Report for the year ended December 31, 2024.
This strategic financial maneuver is expected to enhance Global Partners LP’s ability to navigate the dynamic market conditions and continue its operations effectively. The company, with its principal executive offices in Waltham, Massachusetts, is listed on the New York Stock Exchange under the ticker symbol (NYSE:GLP) for its common units and (NYSE:GLP) pr B for its 9.50% Series B Fixed Rate Cumulative Redeemable Perpetual Preferred Units.
Investors and stakeholders are keeping a close eye on this development as it represents a proactive approach by the company to manage its financial commitments and sustain its market position. The full details of the Eleventh Amendment can be found in the exhibits attached to the SEC filing.
This financial update is based on information contained in a press release statement filed with the U.S. Securities and Exchange Commission. For investors seeking deeper insights, InvestingPro reveals that Global Partners maintains an impressive 20-year streak of consecutive dividend payments, currently offering a 5.43% yield. The company’s comprehensive Pro Research Report, available with an InvestingPro subscription, provides detailed analysis of its financial health, valuation metrics, and growth prospects among 1,400+ top US stocks.
In other recent news, Global Partners LP reported a decline in its Q4 2024 adjusted EBITDA to $97.8 million, down from $112.1 million in the same quarter of the previous year. The company’s adjusted distributable cash flow also decreased to $46.1 million from $58.8 million in 2023. Despite these financial setbacks, Global Partners has been expanding its footprint through acquisitions, including the purchase of 25 refined product terminals from Motiva Enterprises and additional terminals from Gulf Oil Corp, which is expected to boost volumes and support deleveraging. S&P Global Ratings has upgraded the outlook on Global Partners to positive, anticipating reduced leverage below 4x in 2025 due to these strategic moves. In a separate development, Global Partners has entered into a partnership with RoadFlex, integrating its network of service stations into RoadFlex’s fuel card program, which aims to provide discounted fuel across multiple states. Furthermore, Global Partners has recently revised its executive employment agreements, reinforcing its leadership structure with performance-based incentives. Meanwhile, Stifel analysts downgraded Global Partners’ stock rating from Buy to Hold, citing lower-than-expected Q4 earnings but raised the price target slightly to $56.00.
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