Fas Mart, Shore Stop Operator Enters Into $35M Credit Facility
A credit facility is different than a traditional loan because it provides capital to a borrower for multiple purposes and timeframes, without the need to structure a loan for each.
GPM is not new to credit facilities. The company received a $46-million credit facility in September 2010 and another $50-million credit facility this August.
GPM CEO Arie Kotler said the money, in part, would be used to enhance the customer experience at its c-stores and to launch new marketing campaigns.
Store acquisitions are another possible use for the funds. GPM President Dave Eisenberg mentioned that possibility in an interview with CSNews Online at the time of its $50-million credit facility announcement. "We are looking to grow our group of stores through acquisitions, and we are also looking to spend some money in our existing stores to improve the entire customer experience," he said. In the announcement made today, Kotler said he was excited about the company’s future and ability to grow significantly during the next several years. "We have two great brands in Fas Mart and Shore Stop that have tremendous potential both in and outside of our core markets," he added. "It is the start of a new and exciting era of the company and the great people of this organization."
GPM currently operates 213 convenience stores in Virginia, Maryland, Rhode Island, Delaware, Connecticut, North Carolina, Pennsylvania, New Jersey and Tennessee.