Pilot Travel Centers received an investment-grade rating on term loans that will enable it to buy out partner Speedway in the travel center joint venture the companies signed in June 2016, OPIS reported. Proceeds of $750 million of debt along with additional funds from a revolver and another term loan will fund the buyout of Speedway's 29 percent stake in the joint venture.
S&P Global Ratings assigned a "BBB-" rating and a "1" recovery rating to the proposed $1.5 billion in loans.
Pilot said most of Speedway's c-store network will be moving to 7-Eleven in a separate transaction with Japanese parent Seven & i. Like the 7-Eleven deal, the Pilot transaction is expected to take place in early 2021, with Marathon Petroleum getting substantial proceeds.
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