Buckeye Partners, L.P. Announces $210 Million in Limited Partnership Unit Sales
September 19 2017 - 5:42PM
Buckeye Partners, L.P. (“Buckeye”) (NYSE:BPL) today announced an
agreement to sell limited partnership units representing limited
partner interests (“LP Units”) for a total purchase price of
approximately $210 million, which represents approximately a 1%
discount to the trading price at the time of the transaction.
The LP Units are being sold in connection with a privately
negotiated block trade pursuant to Buckeye’s at-the-market equity
distribution program. The offering is expected to close on or
about September 21, 2017, subject to customary closing
conditions. Buckeye intends to use the net proceeds to repay
borrowings on its revolving credit facility, which in part were
used to fund the previously announced merger of VTTI Energy
Partners LP with and into a direct wholly owned subsidiary of VTTI
B.V. and 2017 capital expenditures. Buckeye expects this
offering to be sufficient to fund a portion of its growth capital
projects, eliminating the need for additional equity offerings
through mid-2018.
The LP Units are being offered and sold pursuant
to an effective shelf registration statement that was previously
filed with the Securities and Exchange Commission ("SEC"). This
press release shall not constitute an offer to sell or the
solicitation of an offer to buy any securities, nor shall there be
any sale of these securities in any state in which such offer,
solicitation, or sale would be unlawful prior to registration or
qualification under the securities laws of such states. The
offering is being made only by means of a prospectus and related
prospectus supplement meeting the requirements of Section 10 of the
Securities Act.
About Buckeye Partners,
L.P.
Buckeye Partners, L.P. (NYSE:BPL) is a publicly
traded master limited partnership and owns and operates a
diversified network of integrated assets providing midstream
logistic solutions, primarily consisting of the transportation,
storage, processing and marketing of liquid petroleum
products. Buckeye is one of the largest independent liquid
petroleum products pipeline operators in the United States in terms
of volumes delivered, with approximately 6,000 miles of
pipeline. Buckeye also uses its service expertise to operate
and/or maintain third-party pipelines and perform certain
engineering and construction services for its customers.
Additionally, Buckeye is one of the largest independent
terminalling and storage operators in the United States in terms of
capacity available for service. Buckeye’s terminal network
comprises more than 120 liquid petroleum products terminals with
aggregate storage capacity of over 115 million barrels across
our portfolio of pipelines, inland terminals and marine terminals
located primarily in the East Coast, Midwest and Gulf Coast regions
of the United States and in the Caribbean. Buckeye’s network
of marine terminals enables it to facilitate global flows of crude
oil and refined petroleum products, offering its customers
connectivity between supply areas and market centers through some
of the world’s most important bulk liquid storage and blending
hubs. Buckeye’s flagship marine terminal in The Bahamas,
Buckeye Bahamas Hub, is one of the largest marine crude oil and
refined petroleum products storage facilities in the world and
provides an array of logistics and blending services for the global
flow of petroleum products. Buckeye’s Gulf Coast regional
hub, Buckeye Texas Partners, offers world-class marine
terminalling, storage and processing capabilities. Buckeye’s
50% equity interest in VTTI B.V. expands its international
presence, with premier storage and marine terminalling services for
petroleum products in key global energy hubs, primarily in
Northwest Europe, the United Arab Emirates and Singapore.
Buckeye is also a wholesale distributor of refined petroleum
products in areas served by its pipelines and terminals. More
information concerning Buckeye can be found at
www.buckeye.com.
This press release includes forward-looking
statements that we believe to be reasonable as of today’s date.
Such statements are identified by use of the words “anticipates,”
“believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,”
“projects,” “should,” and similar expressions. Actual results may
differ significantly because of risks and uncertainties that are
difficult to predict and that may be beyond our control. Among them
are (i) changes in federal, state, local, and foreign laws or
regulations to which we are subject, including those governing
pipeline tariff rates and those that permit the treatment of us as
a partnership for federal income tax purposes, (ii) terrorism and
other security risks, including cyber risk, adverse weather
conditions, including hurricanes, environmental releases, and
natural disasters, (iii) changes in the marketplace for our
products or services, such as increased competition, changes in
product flows, better energy efficiency, or general reductions in
demand, (iv) adverse regional, national, or international economic
conditions, adverse capital market conditions, and adverse
political developments, (v) shutdowns or interruptions at our
pipeline, terminalling, storage, and processing assets or at the
source points for the products we transport, store, or sell, (vi)
unanticipated capital expenditures in connection with the
construction, repair, or replacement of our assets, (vii)
volatility in the price of liquid petroleum products, (viii)
nonpayment or nonperformance by our customers, (ix) our ability to
integrate acquired assets with our existing assets and to realize
anticipated cost savings and other efficiencies and benefits and
(x) our ability to successfully complete our organic growth
projects and to realize the anticipated financial benefits. You
should read our filings with the U.S. Securities and Exchange
Commission, including our Annual Report on Form 10-K for the year
ended December 31, 2016 and our Quarterly Reports on Form 10-Q for
the quarters ended March 31, 2017 and June 30, 2017, for a more
extensive list of factors that could affect results. We undertake
no obligation to revise our forward-looking statements to reflect
events or circumstances occurring after today’s date.
Contact:Kevin J. GoodwinVice President &
Treasurerirelations@buckeye.com (800) 422-2825
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