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BRIEF-Valero Energy Partners announces acquisition of the Meraux, 3 rivers terminal services business for $325 mln
August 22, 2016 / 9:01 PM / a year ago

BRIEF-Valero Energy Partners announces acquisition of the Meraux, 3 rivers terminal services business for $325 mln

Aug 22 (Reuters) - Valero Energy Partners Lp :

* Valero Energy Partners Lp announces acquisition of the Meraux and three rivers terminal services business for $325 million

* Deal for $325 million

* In its first twelve months of operation, business to be acquired is expected to contribute approximately $25 million of net income

* Expects to finance $325 million acquisition with borrowings under its revolving credit facility, cash on hand among others

* Upon closing, partnership plans to enter into 10-year terminaling agreements with a subsidiary of Valero

* In its first twelve months of operation, business to be acquired is expected to contribute about $39 million of ebitda

* Partnership plans to enter into 10-year terminaling agreements with a subsidiary of valero

* 10-Year terminaling agreements to include minimum volume commitments covering about 85 percent of planned throughput

* Expects to finance $325 million deal also with issuance of additional common units and general partner units to valero subsidiaries

* Newly issued units will be allocated in proportion allowing general partner to maintain its 2 percent general partner interest Source text for Eikon: Further company coverage:

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