CrossAmerica Partners: Distributions Getting Riskier In 2025
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CrossAmerica Partners faces increased risk for its distributions in 2025 due to a decrease in the covenant for their credit facility leverage ratio, which reduces their margin of safety. Their distribution payments strain cash flows, leaving little after capital expenditures.

November 08, 2024 | 11:45 am
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CrossAmerica Partners' distributions are at risk in 2025 due to a tighter credit facility leverage ratio, which reduces their financial flexibility and increases the burden on cash flows.
The decrease in the covenant for their credit facility leverage ratio directly impacts CrossAmerica Partners by reducing their financial flexibility. This increases the risk of their distributions, as they have less margin to handle weak quarters. The strain on cash flows due to distribution payments and capital expenditures further exacerbates this risk.
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