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LAVAL, Quebec -- Alimentation Couche-Tard, the parent company of convenience-store chains Mac's and Circle K, has refinanced its secured senior terms and revolving credit facilities, totaling $500 million. The refinance will reduce the company's financing costs by a minimum of $2 million per year, according to the company.
The new credit facilities will be unsecured and will have lower interest rates and more flexible conditions that allow or additional borrowing for working capital and other general purposes.
The credit facilities, which have been provided by a group of lenders, including National Bank of Canada, Canadian Imperial Bank of Commerce, The Bank of Nova Scotia, Caisse de depot et placement du Quebec and Bank of America.
The credit facilities have an initial term of five years that can be extended each year for the initial term at the company's request and approval of the lenders.
"We are very pleased with the terms and conditions on which we were able to refinance our bank debt," said Richard Fortin, executive vice-president and CFO of Alimentation Couche-Tard Inc. "It demonstrates confidence in the company's operations and financial condition."
Alimentation Couche-Tard Inc. is the third largest convenience store operator and the second largest independent convenience store operator in North America. Its network is currently comprised of 5,205 convenience stores, 3,244 of which include motor fuel dispensing, in eight markets, including Canada and 23 states in the U.S.