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NEW YORK -- Petroleum Equity Group Ltd. (PEGL) is joining with a finance provider to help retailers fund gas station equipment and facility upgrades.
The improvement projects can include new dispensers and canopies, LED lighting and price signs, car wash equipment, convenience store coolers, merchandisers and other interior equipment, bay to convenience store conversions, E85 upgrades, new underground storage tanks (USTs), and "soft" costs such as permitting, curbing, paving and construction expenses can also be incorporated on a formula basis.
"A significant market need exists for this type of ‘loan to own’ financing," said Ken Shriber, managing director of PEGL. "Thousands of gas stations with service bays and convenience stores have changed hands over the past five years, many of which were sold with aged and tired equipment, single-wall tanks, and outdated appearance and image standards. Through this alliance, we will be meeting the ongoing needs of our clients and associates."
According to Shriber, borrowers can choose a loan term of between two and five years, and will own the improvements at the end of the term. Loan rates as low as 7 percent are achievable. Borrowers are subject to credit underwriting, which will dictate specific terms and conditions.
PEGL’s managing director did not disclose the name of the finance provider.
"We are delighted to serve PEGL clients and associates with this new venture, and are pleased by the initial and positive response from station owners and operators," he added. "The offering also meets the core values of Petroleum Equity Group by providing access to funding for a wide range of store improvement projects at reasonable rates, while allowing owners the opportunity to grow sales and profitability."
Chappaqua, N.Y-based PEGL provides a full range of consulting services to the downstream fuels industry, including financing, project-related valuations and analytics, as well as all activities related to mergers and acquisitions in the wholesale and retail gas sector.