- 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.
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,” “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
Global
Partners LP
Edward Faneuil, 781-894-8800
Executive Vice
President,
General Counsel and Secretary