PBF Logistics (Pbfx) said it’s acquiring the 50% interest it doesn’t already own in the Torrance Valley Pipeline Co. (Tvpc) from an affiliate of its sponsor, refiner PBF Energy, for roughly $200 million in cash, Kallanish Energy reports.
Tvpc owns the 189-mile San Joaquin Valley Pipeline system in California, with crude oil throughput capacity of roughly 110,000 barrels per day. The system is comprised of the M55, M1 and M70 pipelines, which are the crude gathering and transportation lines that supply PBF Energy’s Torrance, California, refinery.
The assets also include 11 pipeline stations with roughly one million barrels of combined storage capacity and truck unloading capability at two of the stations.
“The acquisition of the remaining 50% interest in Tvpc reflects PBF Logistics’ ongoing commitment to deliver sustained growth to our unitholders by adding high-quality assets to our earnings base,” said Thomas Nimbley, CEO of PBF Logistics and PBF Energy.
The acquisition is expected to be financed through a combination of $135 million of gross proceeds from Pbfx’s over-subscribed registered direct offering of common units to institutional investors, and a $65 million drawdown from the partnership’s senior secured revolving credit facility.
Deal closing is expected by July 1.
This post appeared first on Kallanish Energy News.