US-based Valero Energy Partners is set to acquire the Corpus Christi Terminal Services Business from Valero Energy Corporation’s subsidiary in a transaction valued at about $465m.
As part of the transaction, Valero Energy will acquire two terminals that support the company’s Corpus Christi East and West refineries.
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The assets comprise 134 tanks which have a storage capacity of 10.1 million barrels for crude oil, intermediates, and refined petroleum products.
Valero Energy Partners hopes to fund the acquisition with $395m in borrowings under a subordinated loan agreement with Valero.
The acquisition will also be financed by issuing additional common units and general partner units to Valero subsidiaries that are together valued at about $70m.
The company plans to enter into a ten-year terminaling agreement with a subsidiary of Valero once the transaction concludes.
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By GlobalDataAccording to Valero, the business is expected to contribute about $50m of earnings before interest, tax, depreciation and amortisation (EBITDA) in its first full year of operation.
Valero Energy Partners general partner chief executive officer Joe Gorder said: "With transactions totalling $1.14bn, we’ve exceeded our $1bn target for acquisitions in 2015.
"We’re on course to deliver year-over-year distribution growth in excess of 25 percent."
The transaction is slated for completion in October.
In June 2014, Valero Energy Partners has approved the acquisition of the McKee Crude System, Three Rivers Crude System, and Wynnewood Products System from certain subsidiaries of Valero Energy Corporation for $154m.
Image: Valero Energy will acquire two terminals that support the company’s Corpus Christi East and West refineries. Photo: courtesy of PRNewsFoto/Trafigura AG.
