Alimentation Couche-Tard repays close to C$1 billion on its revolver

By Devika Patel

Knoxville, Tenn., Nov. 28 – Alimentation Couche-Tard Inc. generated an “impressive” amount of cash flow last quarter, along with “significant” free cash flow, which enabled the company to deleverage at a faster pace than expected.

The company has repaid nearly C$1 billion on its revolver since the beginning of the year.

“This was once again an impressive quarter in terms of cash-flow generation and continuation of our deleveraging plan,” chief financial officer Claude Tessier said in a press release.

“During the quarter, we’ve continued to generate significant free cash flow allowing us to accelerate our deleveraging plan as evidenced by our adjusted leverage ratio of 2.79 to 1 at the end of the quarter,” Tessier said on the company’s second quarter ended Oct. 14 earnings conference call on Wednesday.

“Since the beginning of the year, we’ve repaid close to $1 billion on our revolving unsecured operating credit [facility],” Tessier said on the call.

The company has C$620 million in cash and approximately C$2.1 billion available under its revolving credit facility.

“Our liquidity position remains strong,” Tessier said on the call.

Alimentation Couche-Tard is a Quebec-based convenience store operator.

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