Paul Hastings Advises CST Brands in Drop Down Transaction to CrossAmerica Partners
Houston, TX-- Paul Hastings LLP, a leading global law firm, announced today that the firm represented CST Brands, Inc. (NYSE:CST) in the sale of a 5% interest in CST’s wholesale fuel supply business to CrossAmerica Partners LP (NYSE:CAPL) for a total consideration of $50.4 million, effective January 1, 2015. CST Brands will receive approximately 1.5 million newly issued CrossAmerica common units as consideration for this transaction. CST Brands is the owner of the general partner of CrossAmerica Partners.
CST’s whole sale fuel supply business provides fuel to substantially all of CST’s U.S. company operated convenience stores and is expected to earn a net profit margin of approximately 5 cents per gallon pursuant to a Fuel Distribution Agreement with a minimum term of 10 years and certain minimum volume commitments.
Paul Hastings’ Houston office also recently advised the
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