CST Explores Sale-Leaseback of Stores
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The venture provides an opportunity to unlock long-term shareholder value, says Lubel.
SAN ANTONIO—Convenience-store operator CST Brands Inc. said Wednesday that its board had authorized exploration of a sale-leaseback strategy that would reduce the company’s cost of capital while also funding future growth. The company has been evaluating alternative financial structures since this past spring.
“We expect this innovative structure will free up substantial capital that will enhance the company’s ability to pursue its strategic growth initiatives,” says Kim Lubel, CST’s chairman, CEO and president. She adds that the real estate venture will give shareholders an opportunity to unlock additional long-term value from “potential upside in the company’s ownership interest in the real estate venture.”…
CST Explores Sale-Leaseback of Stores
