As part of the agreement, Global Partners will issue 5,850,000 limited partner units to Alliance’s owners and acquire long-term debt of about $180m.
The approximate value of the transaction at a closing price of $19.89 per unit is about $296m as on 18 November.
The Partnership has modeled an expected cash return, prior to financing costs, in the low-to-mid-teens and expects to increase the transaction in the first full year of operation.
Subject to the satisfaction of the conditions in the definitive agreement, the partnership anticipates the closing of this transaction to occur in the first quarter of 2012.
Global Partners plans to increase the acquisition tranche of its revolving credit facility by about $100m upon closing of the transaction.
