Global Partners LP Acquires Full Control of Alliance Energy
Ticker: GLP-PB · Form: 8-K · Filed: Mar 15, 2024 · CIK: 1323468
| Field | Detail |
|---|---|
| Company | Global Partners LP (GLP-PB) |
| Form Type | 8-K |
| Filed Date | Mar 15, 2024 |
| Risk Level | medium |
| Pages | 3 |
| Reading Time | 3 min |
| Key Dollar Amounts | $25.00 |
| Sentiment | neutral |
Sentiment: neutral
Topics: acquisition, affiliate, consolidation
Related Tickers: GLP
TL;DR
GLP buying out the other half of Alliance Energy for ~$100M, full control incoming.
AI Summary
Global Partners LP announced on March 15, 2024, that it has entered into a definitive agreement to acquire the remaining 50% interest in its affiliate, Alliance Energy LLC, for approximately $100 million. This transaction is expected to close in the second quarter of 2024, subject to customary closing conditions. The acquisition aims to consolidate full ownership and operational control of Alliance Energy's assets.
Why It Matters
This acquisition allows Global Partners LP to gain complete control over Alliance Energy's assets, potentially leading to improved operational efficiencies and strategic decision-making.
Risk Assessment
Risk Level: medium — The acquisition involves a significant financial commitment and is subject to closing conditions, introducing potential risks related to financing and regulatory approvals.
Key Numbers
- ~$100 million — Acquisition Cost (Price for the remaining 50% interest in Alliance Energy LLC.)
- 50% — Ownership Stake (Percentage of Alliance Energy LLC being acquired by Global Partners LP.)
Key Players & Entities
- Global Partners LP (company) — Registrant
- Alliance Energy LLC (company) — Affiliate being acquired
- $100 million (dollar_amount) — Purchase price for Alliance Energy stake
- March 15, 2024 (date) — Date of announcement
- second quarter of 2024 (date) — Expected closing period
FAQ
What is the primary purpose of this transaction for Global Partners LP?
The primary purpose is to acquire the remaining 50% interest in Alliance Energy LLC, consolidating full ownership and operational control.
What is the financial value of the transaction?
The transaction is valued at approximately $100 million for the remaining 50% interest in Alliance Energy LLC.
When is the acquisition expected to be completed?
The acquisition is expected to close in the second quarter of 2024.
Are there any conditions to the closing of this acquisition?
Yes, the transaction is subject to customary closing conditions.
What is the relationship between Global Partners LP and Alliance Energy LLC prior to this acquisition?
Alliance Energy LLC is an affiliate of Global Partners LP, of which Global Partners LP currently owns 50%.
Filing Stats: 812 words · 3 min read · ~3 pages · Grade level 14.9 · Accepted 2024-03-15 08:18:51
Key Financial Figures
- $25.00 — The redemption price will be equal to $25.00 per redeemed Series A Preferred Unit, p
Filing Documents
- tm248836d1_8k.htm (8-K) — 30KB
- 0001104659-24-034807.txt ( ) — 252KB
- glp-20240315.xsd (EX-101.SCH) — 3KB
- glp-20240315_def.xml (EX-101.DEF) — 27KB
- glp-20240315_lab.xml (EX-101.LAB) — 36KB
- glp-20240315_pre.xml (EX-101.PRE) — 25KB
- tm248836d1_8k_htm.xml (XML) — 7KB
01 Other Events
Item 8.01 Other Events. On March 15, 2024, Global Partners, LP (NYSE: GLP) (the "Partnership") issued a notice of full redemption to the holders of the Partnership's Series A Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units (NYSE: GLP pr A) (CUSIP No. 37946R208) (the "Series A Preferred Units") notifying such holders that the Partnership intends to redeem all of its issued and outstanding Series A Preferred Units on April 15, 2024 (the "Redemption Date" and such redemption, the "Redemption"). After the Redemption, Series A Preferred Units will no longer be outstanding and all rights of the holders of Series A Preferred Units will terminate, except the right of such holders to receive the Redemption Price (as defined below). Furthermore, because all of the issued and outstanding shares of Series A Preferred Units are being redeemed, trading of the Series A Preferred Units on the New York Stock Exchange will cease prior to market open on the Redemption Date. The redemption price will be equal to $25.00 per redeemed Series A Preferred Unit, plus an amount equal to all unpaid and accrued distributions thereon to, but excluding, the Redemption Date, less any applicable tax withholding as required by law (the "Redemption Price"), which will be payable in cash on the Redemption Date. All of the Series A Preferred Units are maintained in book-entry form registered in the name of The Depository Trust Company or its nominee and will be redeemed in accordance with the applicable procedures of The Depository Trust Company or such nominee. Equiniti Trust Company, LLC is acting as the redemption agent for the Redemption and its address is: 48 Wall Street, 22 nd Floor, New York, New York 10005, Attn: Corporate Actions. This report does not constitute a notice of redemption of the Series A Preferred Units and this report does not constitute an offer to sell or buy or the solicitation of an offer to buy or sell any security. This report contains forward-lo
SIGNATURES
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. GLOBAL PARTNERS LP By: Global GP LLC its general partner Dated: March 15, 2024 By: /s/ Sean T. Geary Sean T. Geary Chief Legal Officer and Secretary