Arc Logistics Partners LP's Joint Venture Company Completes Its Acquisition of Joliet Bulk, Barge & Rail LLC
May 14 2015 - 5:31PM
Arc Logistics Partners LP (NYSE:ARCX) ("Arc Logistics" or the
"Partnership"), through a joint venture arrangement with GE Energy
Financial Services, a unit of General Electric Company (NYSE:GE),
has completed its acquisition of all of the membership interests of
Joliet Bulk, Barge & Rail LLC ("JBBR") from CenterPoint
Properties Trust ("CenterPoint") for $216 million. JBBR's principal
assets consist of a crude oil unloading terminal and a 4-mile crude
oil pipeline (the "Joliet Terminal"). The Partnership's joint
venture company will also make certain throughput based earn-out
payments to CenterPoint, which earn-out shall terminate upon the
payment, in the aggregate, of $27 million.
The acquisition follows confirmation from the Joliet Terminal's
major customer that the terminal has become commercially operable.
The Joliet Terminal is capable of unloading approximately 85,000
barrels of crude oil per day, has approximately 300,000 barrels of
onsite storage, and connects to a common carrier crude oil pipeline
through the terminal's 4-mile pipeline.
Arc Logistics is the manager of the Joliet Terminal and owns a
60% interest in the JBBR joint venture company. An affiliate of GE
Energy Financial Services owns the remaining 40%. Arc Logistics
financed its approximate $130 million portion of the purchase price
with net proceeds from the sale of common units in a private
placement and from borrowings under its revolving credit
facility.
Barclays Capital Inc. and SunTrust Robinson Humphrey, Inc. acted
as co-placement agents in connection with the Partnership's private
placement of its common units.
For more information regarding the JBBR Acquisition, please see
Arc Logistics' current report filed on February 20, 2015 with the
Securities and Exchange Commission ("SEC") on Form 8-K and its
periodic reports on Forms 10-K and 10-Q and its current reports on
Form 8-K filed thereafter with the SEC.
About Arc Logistics Partners LP
Arc Logistics is a fee-based, growth-oriented limited
partnership that owns, operates, develops and acquires a
diversified portfolio of complementary energy logistics assets. Arc
Logistics is principally engaged in the terminalling, storage,
throughput and transloading of crude oil and petroleum products.
For more information, please visit www.arcxlp.com.
Forward-Looking Statements
Certain statements and information in this press release may
constitute "forward-looking statements." Certain expressions
including "believe," "expect," "intends," or other similar
expressions are intended to identify the Partnership's current
expectations, opinions, views or beliefs concerning future
developments and their potential effect on the Partnership. While
management believes that these forward-looking statements are
reasonable when made, there can be no assurance that future
developments affecting the Partnership will be those that it
anticipates. The forward-looking statements involve significant
risks and uncertainties (some of which are beyond the Partnership's
control) and assumptions that could cause actual results to differ
materially from the Partnership's historical experience and its
present expectations or projections. Important factors that could
cause actual results to differ materially from forward-looking
statements include: (i) adverse economic, capital markets and
political conditions; (ii) changes in the market place for the
Partnership's services; (iii) changes in supply and demand of crude
oil and petroleum products; (iv) actions and performance of the
Partnership's customers, vendors or competitors; (v) changes in the
cost of or availability of capital; (vi) unanticipated capital
expenditures in connection with the construction, repair or
replacement of the Partnership's assets; (vii) operating hazards,
unforeseen weather events or matters beyond the Partnership's
control; (viii) inability to consummate acquisitions, pending or
otherwise, on acceptable terms and successfully integrate acquired
businesses into the Partnership's operations; (ix) effects of
existing and future laws or governmental regulations; and (x)
litigation. Additional information concerning these and other
factors that could cause the Partnership's actual results to differ
from projected results can be found in the Partnership's public
periodic filings with the SEC, including the Partnership's Annual
Report on Form 10-K for the year ended December 31, 2014 and any
updates thereto in the Partnership's subsequent quarterly reports
on Form 10-Q and current reports on Form 8-K.
In addition, there are significant risks and uncertainties
relating to the Partnership's acquisition and ownership of JBBR,
which can be found in the Partnership's public periodic filings
with the SEC, including the Partnership's Annual Report on Form
10-K for the year ended December 31, 2014 and any updates thereto
in the Partnership's subsequent quarterly reports on Form 10-Q and
current reports on Form 8-K.
These factors are not necessarily all of the important factors
that could cause actual results to differ materially from those
expressed in any of the forward-looking statements contained
herein. Other unknown or unpredictable factors could also have
material adverse effects on the Partnership's future results.
Readers are cautioned not to place undue reliance on
forward-looking statements, which speak only as of the date
thereof. The Partnership undertakes no obligation to publicly
update or revise any forward-looking statements after the date they
are made, whether as a result of new information, future events or
otherwise.
CONTACT: Investor Contact:
212-993-1290
IR@arcxlp.com
www.arcxlp.com
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