ALLENTOWN, Pa. --CrossAmerica Partners LP has announced that it has commenced a public offering of 4.6 million common units representing limited-partner interests in the partnership.
The offering follows the announcement earlier this week by CrossAmerica Partners and CST Brands Inc. of two dropdown transactions--one of convenience stores, one for fuel supply--totaling approximately $261.5 million.
In connection with the offering, the partnership expects to grant the underwriters a 30-day option to purchase up to an additional 690,000 common units.
The partnership intends to use the net proceeds from the offering, including any proceeds received from an exercise of the underwriters’ option to purchase additional common units, to reduce indebtedness outstanding under its credit facility. The partnership then intends to reborrow under its credit facility to fund future acquisitions.
Also earlier this week, CrossAmerica Partners entered into a definitive agreement to acquire the One Stop convenience-store network based in Charleston, W.Va.
BofA Merrill Lynch, Barclays, J.P. Morgan, Raymond James and RBC Capital Markets are acting as joint book-running managers for the offering, and Baird, Janney Montgomery Scott, Oppenheimer & Co. and Stephens Inc. are acting as co-managers.
San Antonio-based CST Brands, one of the largest independent retailers of motor fuels and convenience-store merchandise in North America with approximately 1,900 locations throughout the southwestern United States, New York and eastern Canada, owns the general partner of CrossAmerica Partners.
Allentown, Pa.-based CrossAmerica Partners is a leading wholesale distributor of motor fuels and owner and lessee of real estate used in the retail distribution of motor fuels. Formed in 2012, CrossAmerica Partners distributes fuel to more than 1,100 locations and owns or leases more than 750 sites in 21 states: Pennsylvania, New Jersey, Ohio, Florida, New York, Massachusetts, Kentucky, New Hampshire, Maine, Tennessee, Maryland, Delaware, Illinois, Indiana, West Virginia, Virginia, Texas, Minnesota, Michigan, Wisconsin and South Dakota. CrossAmerica also distributes fuel in Georgia and North Carolina.
It has long-term established relationships with several major oil brands, including ExxonMobil, BP, Shell, Chevron, Sunoco, Valero, Gulf and CITGO.
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