Global Partners preferred shares face redemption risk as leverage improves.

Global Partners preferred shares face redemption risk as leverage improves. GLP's leverage ratio has declined to 3.6x from pandemic peaks near 5.0x, eliminating the need for equity credit from preferred shares to meet bond covenants. The company's strengthened balance sheet and positive outlook provide access to cheaper institutional capital. The 2024 redemption of Series A units, funded through senior note issuance, establishes a clear precedent for calling Series B units. With bonds trading at narrow yields on secondary markets, investors in GLP.PR.B should prepare for potential redemption. The company's improved financial position suggests management will likely exercise call options when advantageous, reducing preferred share valuations and creating reinvestment challenges for income-focused investors holding this security.