CVS increases size of tender offer
Woonsocket, R.I. — CVS Caremark has upped the size of its previously announced tender offers to refinance a portion of its debt. The company announced that it will buy back up to $1.33 billion in notes, up from the previously announced $1 billion.
"Through this transaction as well as our recent debt issuance, we are taking advantage of the current favorable interest rate environment. This debt refinancing will enhance our long-term debt structure and decrease our interest expense going forward,” stated Dave Denton, EVP and CFO of CVS Caremark.
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Couche-Tard acquires 29 stores in Illinois, Missouri and Oklahoma
Laval, Quebec City — Alimentation Couche-Tard Inc. announced that it has signed, through its wholly owned indirect subsidiary, Mac’s Convenience Stores LLC, an agreement to acquire 29 stores, 25 stores are located in Illinois, three in Missouri and one in Oklahoma. The transaction is anticipated to close in December 2012.
All the stores would eventually be rebranded under the Circle K brand. Couche-Tard’s Midwest division would operate 28 of them and the other one would be operated by the Southwest division.
“Subsequent to this transaction, our network in the Midwest division would include a total of 527 company operated stores and 212 locations under wholesale or franchise agreements. These stores occupy strategic locations within their respective trade areas. Strategically, this acquisition would be a great addition to our expansion and growth plans for the Midwest division.” commented Bruce Landini, VP operations, Midwest.
Retail imports to increase 3.9% in December despite port strike
Washington — Import cargo volume at the nation’s major retail container ports is expected to increase 3.9% in December despite a strike that closed the nation’s largest port complex for the first few days of the month, but retailers are keeping a close watch on a possible strike on the East Coast and Gulf Coast, according to the monthly Global Port Tracker report released today by the National Retail Federation and Hackett Associates.
“After a strong kickoff on Black Friday and Cyber Monday, the holiday season is looking good and these numbers reflect that,” NRF VP for supply chain and customs policy Jonathan Gold said. “Nonetheless, we narrowly avoided what could have been a long-term disruption with the strike in Los Angeles and Long Beach and don’t want to run that risk on the East Coast and Gulf Coast.”
U.S. ports followed by Global Port Tracker handled 1.39 million Twenty-Foot Equivalent Units in October, the latest month for which after-the-fact numbers are available. That was down 1% from September, but up 5.2% from October 2011. (One TEU is one 20-foot cargo container or its equivalent.)
November was estimated at 1.22 million TEU, down 5.6% from last year. The downturn was due in part to the eight-day strike that closed most terminals at the Ports of Los Angeles and Long Beach beginning in the last few days of November, but also because November is a traditionally weak month after most holiday cargo has arrived. December is forecast at 1.27 million TEU, up 3.9% from last year, with January forecast at 1.31 million TEU, up 2% from January 2012.
Hackett Associates Founder Ben Hackett said the LA/Long Beach strike shifted some cargo into December but would not have a significant effect on net volume for the year. But retailers are closely monitoring the situation at East Coast and Gulf Coast ports, where a contract extension expires Dec. 29.
“While the strike led to some diversion of cargo to Oakland and ports further afield, we believe much of the cargo destined for LA/Long Beach will simply arrive at the port later as vessels adjust their rotations,” Hackett said. “As we look ahead into the coming months of 2013, the main threat to cargo flows through the ports would be a strike on East Coast and Gulf Coast. There is little option for diversion.”
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