- Transaction Extends Partnership’s Virtual Pipeline to the West Coast
WALTHAM, Mass.--(BUSINESS WIRE)--Feb. 19, 2013-- Global Partners LP (NYSE: GLP) today announced the completion of its acquisition of 100% of the membership interests of Cascade Kelly Holdings LLC, a West Coast crude oil and ethanol facility near Portland, Oregon. The transaction includes a rail transloading facility serviced via short-line track by the BNSF Railway, 200,000 barrels of storage capacity, a deepwater marine terminal with access to a 1,200-foot leased 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. The purchase price, subject to post-closing adjustments, was approximately $95 million.
“The purchase of this crude oil and ethanol facility strategically enhances our network of origin and destination assets, and extends Global’s virtual pipeline to the West Coast,” said Eric Slifka, Global’s president and chief executive officer. “Just as we have for East Coast refiners since 2011, Global can now supply cost-competitive crude from the U.S. and Canadian mid-continent to refiners on the West Coast. The Clatskanie site is linked via the BNSF Railway to our Basin Transload facility in Beulah, ND, facility, where we are constructing a 140,000 barrel tank and truck offloading rack to support crude oil production in the Williston Basin.”
Earlier this month, Global completed the acquisition of a 60% membership interest in Basin Transload LLC for approximately $85 million. To finance both transactions, Global increased its bank credit facility by $115 million and closed a senior unsecured five-year note of $70 million from funds managed by GSO Capital Partners LP, the credit arm of The Blackstone Group.
The Cascade Kelly Holdings transaction is expected to be accretive to unitholders in its first full year of operation, based on current and anticipated future performance as well as economic and market conditions.
About Global Partners LP
A publicly traded master limited partnership, Global Partners LP is a midstream logistics and marketing company. Global is a leader in the logistics of transporting Bakken and Canadian crude oil and other energy products via rail, establishing a ‘virtual pipeline’ from the mid-continent region of the U.S. and Canada to refiners and other customers on the East and West coasts. Global owns, controls or has access to one of the largest terminal networks of petroleum products and renewable fuels in the Northeast, and is one of the largest wholesale distributors of gasoline, distillates, residual oil and renewable fuels to wholesalers, retailers and commercial customers in New England and New York. With a portfolio of approximately 1,000 locations in nine states, the Partnership is also one of the largest independent owners, suppliers and operators of gasoline stations and convenience stores in the Northeast. In addition, the Partnership is a distributor of natural gas. Global is No. 182 in the Fortune 500 list of America’s largest corporations.
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,” “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
Global Partners LP
Edward Faneuil, 781-894-8800
Executive Vice President,
General Counsel and Secretary