Global Partners Announces Early Termination of Railcar Sublease

  Global Partners Announces Early Termination of Railcar Sublease

Business Wire

WALTHAM, Mass. -- December 22, 2016

Global Partners LP (NYSE: GLP) (“the Partnership”) today announced that its
wholly owned subsidiary, Global Companies LLC (“Global”), has signed an
agreement to terminate early a sublease for 1,610 railcars leased from a third
party. As part of this agreement, in the fourth quarter of 2016 Global will
make a one-time discounted lease termination payment. The payment represents a
discount of approximately $10.2 million from approximately $72 million in
railcar lease payments that Global would have been obligated to pay over the
next three years. The termination of the sublease eliminates future lease
payments related to these railcars of approximately $30 million, $29 million
and $13 million in 2017, 2018 and 2019, respectively.

In the fourth quarter of 2016, the Partnership expects to incur a one-time
expense of approximately $81 million 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.

In connection with the sublease termination, the Partnership executed an
amendment to its credit agreement that permits the use of borrowings to make
the early termination payment. The amendment also accelerates the step-down in
the combined total leverage ratio from 5.50 times to 5.00 times effective with
the fiscal quarter ending December 31, 2016.

Eric Slifka, President and CEO of Global Partners, said, “Terminating the
lease for these railcars – three years ahead of its scheduled expiration in
2019 – saves the Partnership more than $10 million in cash and puts some of
the expenses associated with underutilized railcars behind us.”

About Global Partners LP

Global Partners is a midstream logistics and marketing master limited
partnership that owns, controls or has access to one of the largest terminal
networks of petroleum products and renewable fuels in the Northeast. Global
also is one of the largest distributors of gasoline, distillates, residual oil
and renewable fuels to wholesalers, retailers and commercial customers in New
England and New York. With approximately 1,500 locations, primarily in the
Northeast, Global is one of the largest independent owners, suppliers and
operators of gasoline stations and convenience stores. The Partnership is also
engaged in the transportation of crude oil and other products by rail from the
mid-continental U.S. and Canada to the East and West Coasts for distribution
to refiners and others. Global is No. 276 in the Fortune 500 list of America’s
largest corporations. For additional information, visit www.globalp.com.

Forward-looking Statements

Certain statements and information in this press release may constitute
“forward-looking statements.” The words “believe,” “expect,” “anticipate,”
“plan,” “intend,” “foresee,” “should,” “would,” “could” or other similar
expressions are intended to identify forward-looking statements, which are
generally not historical in nature. These forward-looking statements are based
on our current expectations and beliefs concerning future developments and
their potential effect on us. While management believes that these
forward-looking statements are reasonable as and when made, there can be no
assurance that future developments affecting us will be those that we
anticipate. All comments concerning our expectations for future revenues and
operating results are based on our forecasts for our existing operations and
do not include the potential impact of any future acquisitions. Our
forward-looking statements involve significant risks and uncertainties (some
of which are beyond our control) and assumptions that could cause actual
results to differ materially from our historical experience and our present
expectations or projections.

For additional information regarding known material factors that could cause
our actual results to differ from our projected results, please see our
filings with the SEC, including our Annual Report on Form 10-K, Quarterly
Reports on Form 10-Q and Current Reports on Form 8-K.

Readers are cautioned not to place undue reliance on forward-looking
statements, which speak only as of the date hereof. We undertake no obligation
to publicly update or revise any forward-looking statements after the date
they are made, whether as a result of new information, future events or
otherwise.

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Contact:

Global Partners LP
Daphne H. Foster, 781-894-8800
Chief Financial Officer
or
Edward J. Faneuil, 781-894-8800
Executive Vice President, General Counsel and Secretary
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