Transaction Extends Partnership’s Virtual Pipeline and Advantaged
Logistics;
$95 Million Acquisition Scheduled to Close in Q1 2013
WALTHAM, Mass.--(BUSINESS WIRE)--Jan. 28, 2013--
Global Partners LP (NYSE: GLP) today announced that it has signed an
agreement to acquire 100 percent of the membership interests in a West
Coast crude oil and ethanol facility near Portland, Oregon from Cascade
Kelly Holdings LLC. The total purchase price is expected to be
approximately $95 million. The transaction includes a rail transloading
facility serviced by the BNSF Railway, 200,000 barrels of storage
capacity, a deepwater marine terminal, a 1,200-foot dock and the largest
ethanol plant on the West Coast. Situated along the Columbia River in
Clatskanie, Oregon, the site is located on land leased under a long-term
agreement from the Port of St. Helens. In November 2012, the facility
began transloading unit trains of crude oil.
“This transaction capitalizes on our advantaged logistics and enables
Global to supply cost-competitive crude and ethanol to refiners and
customers on the West Coast,” said Eric Slifka, Global’s president and
chief executive officer. “From our origination hub in the Bakken region
of North Dakota, we will now have destination assets on both coasts. The
Oregon site is linked via BNSF to the Basin Transload facility in
Beulah, North Dakota while our Albany, NY terminal is connected via
single line haul on Canadian Pacific to the Basin Transload location in
Columbus, North Dakota. This facility also creates a link between the
Western Canadian Sedimentary Basin and Pacific refiners. With the
pending closing of our Basin Transload acquisition this quarter, these
new assets increase our capability to transport crude from the U.S. and
Canadian mid-continent and extend our virtual pipeline to the West.”
“Because certain regions of the West Coast energy market have limited
pipeline access, the dynamics of sourcing and logistics for PADD V
refiners and customers are comparable to those we see in the Northeast,”
Slifka said. “As we have demonstrated to those customers, we believe
that we can apply our rail and marine expertise to meet the demand for
crude and ethanol on the West Coast. Given the 3.3 million barrels a day
of crude refining capacity in PADD V, this facility represents an
opportunity for Global to drive additional product volumes and enhance
margins.”
Global’s purchase of Cascade Kelly Holdings, which has been approved by
the Board of Directors of the Partnership’s general partner, Global GP
LLC, is subject to customary regulatory approvals and various other
customary commercial closing conditions. The purchase is expected to be
completed by the end of the current quarter and is expected to be
accretive to unit holders in its first full year of operation.
In addition to this transaction, this quarter Global expects to close
its pending acquisition of a 60% interest in Basin Transload, LLC for
approximately $80 million. To finance these transactions, Global has
arranged a $115 million increase in its bank credit facility and has
secured a senior unsecured five-year note of up to $70 million from
funds managed by GSO Capital Partners LP, the credit arm of The
Blackstone Group.
About Global Partners LP
Global
Partners LP, a publicly traded master limited partnership based in
Waltham, Massachusetts, owns, controls or has access to one of the
largest terminal networks of refined petroleum products and renewable
fuels in the Northeast. Global Partners is a leader in the logistics of
transporting crude and other products from the mid-continent region of
the U.S. and Canada to the East Coast. The Partnership is one of the
largest wholesale distributors of gasoline (including blendstocks such
as ethanol and naphtha), distillates (such as home heating oil, diesel
and kerosene), residual oil and renewable fuels to wholesalers,
retailers and commercial customers in the New England states and New
York. In addition, the Partnership has a portfolio of approximately
1,000 gas stations in nine Northeastern states. The Partnership also is
a distributor of natural gas. A FORTUNE 500® company, Global Partners
trades on the New York Stock Exchange under the ticker symbol "GLP." For
additional information, please visit www.globalp.com.
Forward-looking Statements
Some of the information contained in this news release may contain
forward-looking statements. Forward-looking statements include, without
limitation, any statement that may project, indicate or imply future
results, events, performance or achievements, and may contain the words
“may,” “believe,” “should,” “could,” “expect,” “anticipate,” “plan,”
“intend,” “estimate,” “continue,” “will likely result,” or other similar
expressions. In addition, any statement made by Global Partners LP’s
management concerning future financial performance (including future
revenues, earnings or growth rates), ongoing business strategies or
prospects and possible actions by Global Partners LP or its subsidiaries
are also forward-looking statements.
Although Global Partners LP believes these forward-looking statements
are reasonable as and when made, there may be events in the future that
Global Partners LP is not able to predict accurately or control, and
there can be no assurance that future developments affecting Global
Partners LP’s business will be those that it anticipates.
For additional information about risks and uncertainties that could
cause actual results to differ materially from the expectations Global
Partners LP describes in its forward-looking statements, please refer to
Global Partners LP’s Annual Report on Form 10-K for the year ended
December 31, 2011 and subsequent filings the Partnership makes with the
Securities and Exchange Commission.
Readers are cautioned not to place undue reliance on the forward-looking
statements, which speak only as of the date on which they are made.
Global Partners LP expressly disclaims any obligation or undertaking to
update forward-looking statements to reflect any change in its
expectations or beliefs or any change in events, conditions or
circumstances on which any forward-looking statement is based.
Source: Global Partners LP
Global Partners LP
Thomas J. Hollister, 781-894-8800
Chief
Operating Officer and
Chief Financial Officer
or
Edward
J. Faneuil, 781-894-8800
Executive Vice President,
General
Counsel and Secretary
