Refuel has announced the completion of a $260.9 million sale-leaseback transaction with Getty Realty Corp., plus the closing of a new senior secured credit facility refinancing the company’s existing debt.
Under the sale-leaseback transaction, the companies said, Getty Realty acquired the real estate of a portfolio of 41 Refuel convenience retail properties. Refuel will continue to operate all locations under long-term leases, with no change to how the stores are managed or operated.
The transactions create “a more balanced mix of owned versus leased real estate while preserving a substantial owned real estate portfolio,” Refuel noted in a statement.
The new credit facility is expected to materially reduce Refuel’s annual interest expense, meaningfully improving the company’s financial position as it continues executing its long-term strategy.
“Since inception, Refuel has been focused on assembling a portfolio of high-quality stores in attractive markets with significant real estate ownership. This transaction exemplifies the benefits of that strategy, allowing us to unlock significant value while maintaining a highly attractive network of stores and a strong balance sheet,” said Travis Smith and Jon Rier, co-CEOs of Refuel. “We are pleased to partner with Getty and our longtime bank group led by Citizens. Our focus remains what it has always been, investing in our people, our stores and the long-term growth of Refuel in service of our customers.”
Citizens Bank, a subsidiary of Citizens Financial Group, serves as administrative agent for the new credit facility, with Bank of Montreal, Fifth Third Bank, Pinnacle Bank and Wells Fargo joining Citizens as joint lead arrangers.
Today, Refuel operates approximately 250 locations across the southeastern U.S.
