USD Partners Completes Acquisition of Hardisty South Terminal Assets
HOUSTON — USD Partners LP has closed the previously announced acquisition of the Hardisty South terminal assets from USD Group LLC, the company said on Wednesday.
USD Partners also exchanged the sponsor’s economic general partner interest in the partnership for a non-economic GP Interest and eliminated the sponsor’s incentive distribution rights (IDRs) in the partnership for total consideration of $75 million in cash and approximately 5.75 million common units. The cash portion of the transaction was funded with borrowings under the partnership’s $275 million senior secured credit facility.
Today, the partnership’s combined Hardisty Terminal has the designed takeaway capacity of three and one-half unit trains per day, or approximately 262,500 barrels per day, including the newly-acquired Hardisty South Terminal. The acquisition of the Hardisty South Terminal increases the size, scale, and growth capacity of the partnership’s asset base, while optimizing operational and commercial synergies of the Hardisty Terminal in order to capitalize on the growth benefits associated with the sponsor’s Diluent Recovery Unit program.
The transaction was approved by the board of directors of the general partner of the partnership based on the approval and recommendation of its conflicts committee, which consists entirely of independent directors.
Formed in 2014, USD Partners is a fee-based, growth-oriented master limited partnership designed to acquire, develop and operate midstream infrastructure and complementary logistics solutions for crude oil, biofuels and other energy-related products.
Related News
Related News
- Enbridge Plans 86-Mile Pipeline Expansion, Bringing 850 Workers to Northern B.C.
- Intensity, Rainbow Energy to Build 344-Mile Gas Pipeline Across North Dakota
- U.S. Moves to Block Enterprise Products’ Exports to China Over Security Risk
- Strike Pioneers First-of-Its-Kind Pipe-in-Pipe Installation on Gulf Coast with Enbridge
- 208-Mile Mississippi-to-Alabama Gas Pipeline Moves Into FERC Review
- U.S. Pipeline Expansion to Add 99 Bcf/d, Mostly for LNG Export, Report Finds
- A Systematic Approach To Ensuring Pipeline Integrity
- 275-Mile Texas-to-Oklahoma Gas Pipeline Enters Open Season
- LNG Canada Start-Up Fails to Lift Gas Prices Amid Supply Glut
- Strike Pioneers First-of-Its-Kind Pipe-in-Pipe Installation on Gulf Coast with Enbridge
Comments