WALTHAM, Mass.--(BUSINESS WIRE)--May 10, 2007--Global Partners LP
(NYSE: GLP), one of the Northeast's largest wholesale distributors of
gasoline, distillates and residual oil to wholesalers, retailers and
commercial customers, today announced that it has completed the
previously announced acquisition of three contiguous refined products
terminals in Albany and Newburgh, New York and Burlington, Vermont
from ExxonMobil Oil Corporation for cash consideration of $101.5
million. The terminals have a combined active storage capacity of 1.3
million barrels, increasing Global's total storage capacity by 19% to
8.1 million barrels. ExxonMobil has entered into throughput contracts
for five years with Global to use each of the terminals.
Global financed the acquisition through an expansion of its
existing credit facility, a $50 million private placement of Class B
units to Kayne Anderson MLP Investment Company and funds managed by
Tortoise Capital Advisors, LLC and Fiduciary Asset Management, LLC,
and proceeds of approximately $15 million from the sale of its shares
of NYMEX Holdings and related NYMEX seats.
"These high-quality strategic assets complement our current
terminal network and further advance Global's leadership position in
the Northeast," said President and Chief Executive Officer Eric
Slifka. "Their location and product mix expand Global's opportunities
to generate robust returns by focusing on our core operating
strengths: supply, throughput and marketing. We expect the acquisition
to be slightly accretive to our unitholders in the first full year of
operation, with improving returns thereafter as the full potential of
these assets is further realized."
The properties acquired by Global from ExxonMobil are the:
-- Albany, New York terminal, which has active storage capacity
of 738,000 barrels and is supplied by ship, barge and rail.
The facility also has 683,000 barrels of storage capacity with
respect to which Global will seek permits to bring back into
service. Products distributed from this terminal include
gasoline, ultra-low sulfur diesel, heating oil and ultra-low
sulfur kerosene. The facility includes a petroleum contact
water treatment plant and real estate expansion opportunities.
-- Newburgh, New York terminal, which has 403,000 barrels of
active storage capacity for products including gasoline,
ultra-low sulfur diesel, heating oil and ethanol, and is
supplied by barge and truck.
-- Burlington, Vermont terminal, which has active storage
capacity of 153,000 barrels and is supplied by rail. In
addition, Global expects to bring several idle tanks totaling
approximately 93,000 barrels back into service. Products
distributed from this terminal include gasoline, ultra-low
sulfur diesel, heating oil and ultra-low sulfur kerosene.
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 in the
Northeast. The partnership is one of the largest wholesale
distributors of gasoline, distillates (such as home heating oil,
diesel and kerosene) and residual oil to wholesalers, retailers and
commercial customers in the Northeast. Global Partners LP trades on
the New York Stock Exchange under the ticker symbol "GLP." For
additional information, please visit www.globalp.com.
Safe Harbor Statement
This news release contains certain "forward-looking statements"
within the meaning of the federal securities laws. These
forward-looking statements are identified as any statements that do
not relate strictly to historical or current facts and can generally
be identified by the use of forward-looking terminology including
"will," "may," "believe," "expect," "anticipate," "estimate,"
"continue" or other similar words. Such statements may discuss
business prospects, goals, new developments and future expectations or
contain projections of results of operations, financial condition and
Global Partners LP's ability to make distributions to unitholders.
These statements are not guarantees of performance. Although Global
Partners LP believes these forward-looking statements are based on
reasonable assumptions, statements made regarding future results are
subject to a number of assumptions, uncertainties and risks, many of
which are beyond the control of Global Partners LP, which may cause
actual results to be materially different from the forward-looking
statements contained in this news release. For specific risks and
uncertainties that could cause actual results to differ materially
from forward-looking statements, please refer to Global Partners LP's
Annual Report on Form 10-K for the year ended December 31, 2006. All
forward-looking statements included in this news release and all
subsequent written or oral forward-looking statements attributable to
Global Partners LP or persons acting on its behalf are expressly
qualified in their entirety by these cautionary statements. The
forward-looking statements speak only as of the date made, and Global
Partners LP undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
CONTACT: Thomas J. Hollister
Chief Operating Officer and
Chief Financial Officer
Global Partners LP
(781) 894-8800
or
Edward J. Faneuil
Executive Vice President,
General Counsel and Secretary
Global Partners LP
(781) 894-8800
SOURCE: Global Partners LP