The Pantry Amends Marathon Supply Agreements

Deals add locations, adjust rebate volumes, includes extension options

CARY, N.C. -- The Pantry Inc. recently entered into an amended and restated master conversion agreement (MCA) and an amended and restated guaranteed supply agreement (GSA) with Marathon Petroleum Co. LP., the retailer said in a filing with the U.S. Securities & Exchange Commission (SEC).

The principal changes--which also supersede and replace the original MCA dated July 26, 2010, as amended, between the company and Marathon and the original GSA dated July 26, 2010, as amended, between the company and Marathon--are as follows:

  • Marathon has been granted the option to extend the term of each of the GSA and the MCA for an additional year through Dec. 31, 2018.
  • The parties has added more locations to the branded product supply and trademark license agreement (PSA) dated July 26, 2010, which relates to the supply of the company's Marathon branded locations, bringing the total number of Marathon-branded sites to 364.
  • The Marathon-branded sites must remain Marathon sites for the term of the MCA so long as the company directly or indirectly provides fuel to them. The company intends to exercise its right to extend the term of the PSA from its current expiration date of June 30, 2016, until Dec. 31, 2017. Marathon's exercise of its right to extend the MCA will operate to extend the PSA for an additional year.
  • The parties have adjusted the minimum volumes required for the company to obtain the volume-based rebates available under the arrangements.

Findlay, Ohio-based Marathon Petroleum Corp. (MPC), together with its subsidiaries Marathon Petroleum Co. LP, Speedway LLC, which owns and operates approximately 1,460 stores in seven states, and MPLX LP, a midstream master limited partnership (MLP), is one of the largest petroleum product refiners, marketers and transporters in the United States. MPC's refining, marketing and transportation operations are concentrated primarily in the Midwest, Gulf Coast and Southeast. Marathon brand gasoline is sold through approximately 5,000 independently owned retail outlets across 17 states. MPC also owns, leases or has ownership interests in approximately 8,300 miles of pipeline. MPC's fully integrated system provides operational flexibility to move crude oil, feedstocks and petroleum-related products through the company's distribution network in the Midwest, Southeast and Gulf Coast regions.

Based in Cary, N.C., The Pantry is a leading independently operated convenience store chain in the southeastern United States and one of the largest independently operated convenience store chains in the country. As of May 7, 2013, the company operated 1,567 stores in 13 states under select banners, including its primary operating banner, Kangaroo Express.