Item 3.03 Material Modification to Rights of Security Holders.
The information set forth under Item 5.03 is incorporated herein by reference
into this Item 3.03.
Item 5.03 Amendments to Articles of Incorporation or Bylaws; Changes in Fiscal
Year
On March 24, 2021, Global Partners LP, a Delaware limited partnership (the
"Partnership"), issued 3,000,000 of its 9.50% Series B Fixed Rate Cumulative
Redeemable Perpetual Preferred Units representing limited partner interests in
the Partnership (the "Series B Preferred Units"), at a price to the public of
$25.00 per Series B Preferred Unit, pursuant to the previously filed
Underwriting Agreement, dated as of March 17, 2021, by and among the
Partnership, Global Operating LLC, Global GP LLC (the "General Partner") and
Stifel, Nicolaus & Company, Incorporated and Morgan Stanley & Co. LLC, as
representatives of the several underwriters named therein.
In connection with the closing of the offering of the Series B Preferred Units
on March 24, 2021, the General Partner executed the Fifth Amended and Restated
Agreement of Limited Partnership of the Partnership (the "Amended and Restated
Partnership Agreement") for the purpose of creating and defining the
preferences, rights, powers and terms of the Series B Preferred Units. The
amendments effected by the Amended and Restated Partnership Agreement provide
for the issuance of the Series B Preferred Units, in summary, with the features
described below.
The Series B Preferred Units rank (a) senior to common units representing
limited partner interests in the Partnership (the "Common Units"), incentive
distribution rights and to each other class or series of limited partner
interests or other equity securities of the Partnership established after the
original issue date of the Series B Preferred Units (the "Series B Original
Issue Date") that is not expressly made senior to or on parity with the 9.75%
Series A Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units
representing limited partner interests in the Partnership (the "Series A
Preferred Units") and the Series B Preferred Units as to the payment of
distributions and amounts payable upon a liquidation event (individually and
collectively, the "Preferred Unit Junior Securities"), (b) on parity with
respect to distributions or amounts payable upon a liquidation event, as
applicable, with the Series A Preferred Units and each other and any class or
series of limited partner interests or other equity securities of the
Partnership established after the Series B Original Issue Date with terms
expressly providing that such class or series ranks on parity with the Series A
Preferred Units and the Series B Preferred Units as to the payment of
distributions or amounts payable upon a liquidation event (individually and
collectively, but excluding Preferred Unit Senior Securities (as defined below),
the "Preferred Unit Parity Securities") and (c) junior with respect to
distributions or amounts payable upon a liquidation event, as applicable, to any
class or series of limited partner interests or equity securities of the
Partnership established after the Series B Original Issue Date with terms
expressly made senior to the Series A Preferred Units and the Series B Preferred
Units as to the payment of distributions or amounts payable upon a liquidation
event (individually and collectively, the "Preferred Unit Senior Securities")
and to all existing and future indebtedness and other liabilities with respect
to assets available to satisfy claims against the Partnership.
Distributions on the Series B Preferred Units will be cumulative from the Series
B Original Issue Date and will be payable quarterly in arrears on February 15,
May 15, August 15 and November 15 of each year (each, a "Distribution Payment
Date"), commencing on May 15, 2021, to holders of record as of the opening of
business on the February 1, May 1, August 1 or November 1 next preceding the
Distribution Payment Date, in each case, when, as, and if declared by the
General Partner out of legally available funds for such purpose. A pro-rated
initial distribution on the Series B Preferred Units will be payable on May 15,
2021 in an amount equal to approximately $0.3365 per Series B Preferred Unit.
The distribution rate for the Series B Preferred Units will be 9.50% per annum
of the $25.00 liquidation preference per Series B Preferred Unit (equal to
$2.375 per Series B Preferred Unit per annum).
The Partnership will not declare or pay or set apart for payment any
distributions on any Preferred Unit Junior Securities (other than a distribution
payable solely in Preferred Unit Junior Securities) unless full cumulative
distributions have been or contemporaneously are being paid or provided for on
all outstanding Series B Preferred Units and any Preferred Unit Parity
Securities (including the Series A Preferred Units) through the most recent
respective distribution periods.
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At any time on or after May 15, 2026, the Partnership may redeem, in whole or in
part, the Series B Preferred Units at a redemption price in cash of $25.00 per
Series B Preferred Unit plus an amount equal to all accumulated and unpaid
distributions thereon to, but excluding, the date of redemption, whether or not
declared. The Partnership must provide not less than 30 days' and not more than
60 days' advance written notice of any such redemption.
Upon the occurrence of a Series B Change of Control (as defined in the Amended
and Restated Partnership Agreement), the Partnership may, at its option, redeem
the Series B Preferred Units, in whole or in part, within 120 days after the
first date on which such Series B Change of Control occurred, by paying $25.00
per Series B Preferred Unit, plus all accumulated and unpaid distributions to,
but excluding, the date of redemption, whether or not declared. If, prior to the
Series B Change of Control Conversion Date (as defined in the Amended and
Restated Partnership Agreement), the Partnership exercises its redemption rights
relating to Series B Preferred Units, holders of the Series B Preferred Units
that the Partnership has elected to redeem will not have the conversion right
discussed below related to a Series B Change of Control.
Upon the occurrence of a Series B Change of Control, each holder of Series B
Preferred Units will have the right (unless, prior to the Series B Change of
Control Conversion Date, the Partnership provides notice of its election to
redeem the Series B Preferred Units) to convert some or all of the Series B
Preferred Units held by such holder on the Series B Change of Control Conversion
Date into a number of Common Units per Series B Preferred Unit to be converted
equal to the lesser of (a) the quotient obtained by dividing (i) the sum of the
$25.00 liquidation preference plus the amount of any accumulated and unpaid
distributions to, but excluding, the Series B Change of Control Conversion Date
(unless the Series B Change of Control Conversion Date is after a record date
for a Series B Preferred Unit distribution payment and prior to the
corresponding Distribution Payment Date, in which case no additional amount for
such accumulated and unpaid distribution will be included in this sum) by (ii)
the Series B Common Unit Price (as defined in the Amended and Restated
Partnership Agreement) and (b) 2.1533, subject, in each case, to certain
exceptions and adjustments.
Any such redemptions would be effected only out of funds legally available for
such purposes and would be subject to compliance with the provisions of the
Partnership's outstanding indebtedness.
Holders of Series B Preferred Units generally have no voting rights, except for
limited voting rights with respect to (i) potential amendments to the Amended
and Restated Partnership Agreement that would have a material adverse effect on
the terms of the Series B Preferred Units, (ii) the creation or issuance of any
Preferred Unit Parity Securities (including any additional Series A Preferred
Units and Series B Preferred Units) if the cumulative distributions payable on
then outstanding Series B Preferred Units (or Preferred Unit Parity Securities,
including the Series A Preferred Units, if applicable) are in arrears, (iii) the
creation or issuance of any Preferred Unit Senior Securities and (iv) the
declaration or payment of any distribution to the holders of Common Units out of
capital surplus.
The foregoing description of the Amended and Restated Partnership Agreement is
qualified in its entirety by reference to the full text of the Amended and
Restated Partnership Agreement, which is attached as Exhibit 3.1 to this Current
Report on Form 8-K and incorporated by reference into this Item 5.03.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit
Number Description
3.1 Fifth Amended and Restated Agreement of Limited Partnership of
Global Partners LP, dated as of March 24, 2021.
5.1 Opinion of Vinson & Elkins L.L.P. as to the legality of the offered
Series B Preferred Units.
8.1 Opinion of Vinson & Elkins L.L.P. regarding tax matters.
23.1 Consent of Vinson & Elkins L.L.P. (included in its opinions filed as
Exhibit 5.1 and Exhibit 8.1).
104 Cover Page Interactive Data File (embedded within the Inline XBRL
document)
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