Genesis Energy, L.P. Enters Into Agreement to Sell Powder River Basin Midstream Assets and Amends Revolving Credit Facility
August 29 2018 - 06:00AM
Business Wire
Genesis Energy, L.P. (NYSE: GEL) announced today that an
affiliate of Silver Creek Midstream, LLC has exercised its option
to acquire and Genesis has signed a definitive agreement to sell
its Powder River Basin Midstream Assets for approximately $300
million in net cash proceeds. Proceeds from the sale will be used
by Genesis to reduce the balance outstanding under its revolving
credit facility.
The Powder River Basin Midstream Assets include Genesis’ Powder
River Basin Pipeline along with the associated crude oil gathering
system and rail facility.
In conjunction with the transaction, Genesis executed an
amendment to its existing revolving credit facility, which among
other things, sets the bank leverage ratio to 5.50x throughout the
remaining term of the facility, currently May 8th 2022.
The sale is subject to customary closing conditions, including
obtaining regulatory approvals. The transaction is expected to
close in the third quarter of 2018.
Genesis Energy, L.P. is a diversified midstream energy master
limited partnership headquartered in Houston, Texas. Genesis’
operations include offshore pipeline transportation, sodium
minerals and sulfur services, onshore facilities and pipeline
transportation and marine transportation. Genesis’ operations are
primarily located in Texas, Louisiana, Arkansas, Mississippi,
Alabama, Florida, Wyoming and the Gulf of Mexico.
This press release includes forward-looking statements as
defined under federal law. Although we believe that our
expectations are based upon reasonable assumptions, we can give no
assurance that our goals will be achieved, including statements
regarding the closing of the acquisition and the expected benefits
of the acquisition. Actual results may vary materially. We
undertake no obligation to publicly update or revise any
forward-looking statement.
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version on businesswire.com: https://www.businesswire.com/news/home/20180829005206/en/
Genesis Energy, L.P.Bob Deere, 713-860-2516Chief Financial
Officer
Genesis Energy (NYSE:GEL)
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