CrossAmerica announces elimination of IDRs
CrossAmerica Partners and investment entities controlled by Joe Topper, the founder of CrossAmerica, announced the execution of a definitive agreement to eliminate all of CrossAmerica's incentive distribution rights, or IDRs, in exchange for approximately 2.5M newly issued CAPL common units. The newly issued CAPL common units have a total equity value of approximately $45M. Joe Topper, chairman of CrossAmerica Partners, said, "We are pleased to announce this agreement to eliminate the IDRs. With our recent purchase of the general partner, we believed this was an important step for the Partnership by further aligning ourselves with our public unitholders and focusing on the long-term growth of CrossAmerica going forward." The terms of the transaction were unanimously approved by the board of directors of the general partner of CrossAmerica following the unanimous approval and recommendation of its conflicts committee, comprised entirely of independent directors. The conflicts committee engaged Evercore Group LLC as its financial advisor and Richards, Layton & Finger, P.A. as its legal advisor. The transaction is expected to close as soon as practicable after the record date with respect to the fourth quarter 2019 distribution.