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. View source version on businesswire.com: http://www.businesswire.com/news/home/20161222005367/en/ 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
Global Partners Announces Early Termination of Railcar Sublease
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