LAVAL, Quebec -- Alimentation Couche-Tard Inc. has refinanced its secured senior term and revolving credit facilities. The new credit facilities are unsecured, will be available at significantly lower interest rates and on more flexible conditions and will provide additional borrowing availability for working capital and general corporate purposes.
The credit facilities have been arranged by a group of lenders lead by National Bank of Canada with, among others, Canadian Imperial Bank of Commerce, The Bank of Nova Scotia, Caisse de depot et placement [image-nocss] du Quebec and Bank of America. The credit facilities consist of unsecured revolving facilities of $500 million (U.S.) with an initial term of 5 years that could be extended each year to its initial 5-year term at the request of the Laval, Quebec-based company with the consent of the lenders.
"We are very pleased with the terms and conditions on which we were able to refinance our bank debt," said Richard Fortin, executive vice president and CFO of Alimentation Couche-Tard Inc. It demonstrates confidence in the company's operations and financial condition.
On a pro-forma basis, the credit facilities would have reduced the company's annual financing costs by at least $2 million.
In North America, Alimentation Couche-Tard is the third-largest convenience store operator and the second-largest independent (not integrated with a petroleum company) convenience store operator and the most profitable one within such category as a publicly held company. Couche-Tard's network is currently comprised of 5,205 convenience stores, 3,244 of which include motor fuel dispensing, located in eight large geographic markets, including three in Canada and five, which cover 23 States, in the United States.
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