NEW YORK -- Petroleum Equity Group Ltd. (PEGL) has announced an alliance with providers of financing for an extensive list of retail gas station equipment and facility upgrades. This venture brings funding, with favorable terms, to a historically underserved client base, the company said. It did not name the providers.
The scope of improvement projects can include new dispensers and canopies, LED lighting and price signs, car wash equipment, convenience store coolers, merchandisers and other interior equipment, bay-to-convenience-store conversions, E85 upgrades, new underground storage tanks (USTs) and soft costs such as permitting and construction expenses can also be incorporated on a formula basis.
"A significant market need exists for this type of loan to own financing," said Ken Shriber, managing director of PEGL. "Thousands of gas stations with service bays and convenience stores have changed hands over the past five years, many of which were sold with aged and tired equipment, single-wall tanks and outdated appearance and image standards. Through this alliance, we will be meeting the ongoing needs of our clients and associates."
Borrowers may choose a loan term that meets their needs, for loan amounts from $150,000 to $500,000, and will own the improvements at the end of the term. Loan rates as low as approximately 6.5% are achievable, said the company.
Borrowers are subject to credit underwriting, which will dictate specific terms and conditions, it added.
"We are delighted to serve PEGL clients and associates with this new venture, and are pleased by the initial and positive response from station owners and operators," Shriber said. "The offering also meets the core values of Petroleum Equity Group by providing access to funding for a wide range of store improvement projects at reasonable rates, while allowing owners the opportunity to grow sales and profitability."
Established in 2008 in Chappaqua, N.Y., Petroleum Equity Group is a source for a full range of consulting services to the downstream fuels industry, including financing, project-related valuations and analytics and all activities related to mergers and acquisitions in the wholesale and retail gasoline sector.
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