Terms

Series

Series B

Liquidation Preference

$25.00

Coupon Rate

9.5%

Rate Type

Fixed

Annual Dividend

$2.38

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

Yes

Convertible

Yes

Callable

Yes

First Call Date

May 15, 2026

First Call Price

$25.00

Redemption Notice Period

30 days

Capital Stack Ranking

Junior To: All Existing And Future Indebtedness And Other Liabilities With Respect To Assets Available To Satisfy Claims, Any Senior Securities (Limited Partner Interests Or Equity Securities Established After Original Issue Date With Terms Expressly Made Senior To The Series B Preferred Units); Pari Passu With: Series A Preferred Units, Any Other Parity Securities (Limited Partner Interests Or Equity Securities Established After Original Issue Date With Terms Expressly Providing Parity Ranking); Senior To: Common Units, Incentive Distribution Rights (Idrs), Any Junior Securities (Limited Partner Interests Or Equity Securities Established After Original Issue Date That Are Not Expressly Made Senior To Or On Parity With The Series B Preferred Units)

Regulatory (Basel III) Call

No

Tax Classification

Ordinary

Qualifies for QDI

No

Qualifies for DRD

No

Shares Offered

3,000,000

Prospectus Summary

Global Partners LP is offering 3,000,000 Series B Preferred Units with a liquidation preference of $25.00 per unit and a fixed distribution rate of 9.50% per annum (equivalent to $2.375 per unit annually or $0.59375 quarterly). Distributions are cumulative from issuance and payable quarterly on February 15, May 15, August 15, and November 15, commencing May 15, 2021. These perpetual preferred units have no stated maturity date unless redeemed by the issuer on or after May 15, 2026 at $25.00 plus accrued distributions, or upon a Change of Control. The security is not a depositary share—it represents a direct preferred unit interest in the partnership. The Series B Preferred Units rank senior to Global Partners' common units and all other junior equity securities issued after the original issuance date, on equal terms (pari passu) with the Series A Preferred Units, and junior to all existing and future indebtedness and liabilities. As of December 31, 2020, Global Partners had $1.044 billion in total long-term debt, including $306.4 million under its credit agreement and $750 million in senior notes. The issuance does not create structural subordination because Global Partners LP is the operating partnership itself, not a holding company; however, debt holders have claim on assets before preferred unitholders. The partnership agreement includes a dividend stopper: no distributions may be paid on common units or junior securities unless full cumulative distributions on the Series B Preferred Units and Series A Preferred Units have been paid or accrued. At par, the Series B Preferred Units yield 9.50% annually. Importantly, these distributions will be taxed as ordinary income, not as qualified dividends eligible for the preferential 15%/20% long-term capital gains rate, and they do not qualify for the 20% deduction for qualified business income. The partnership will treat distributions as guaranteed payments for the use of capital. Distributions are payable quarterly, with record dates set on February 1, May 1, August 1, and November 1, three business days before the respective payment dates. The dividend stopper mechanism prevents any distribution to common unitholders unless all cumulative preferred distributions (Series B and Series A) through the most recent payment date have been declared or paid; failure to meet this test also restricts the partnership's ability to issue additional senior or parity securities without two-thirds holder consent (if preferred distributions are in arrears).

Summarized from the SEC prospectus filing.

Distribution History

Conversion Terms

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

Distributions to common units and other junior securities are blocked unless full cumulative distributions on the Series B Preferred Units and any Parity Securities (including Series A Preferred Units) have been paid or provided for through the most recent distribution periods.

Other Preferreds from Global Partners LP

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 55 (Average)