NuStar Energy Agrees to Sell Its European Operations to Inter Pipeline
October 30 2018 - 8:30AM
Business Wire
Divestiture Part of NuStar's Comprehensive
Plan to Lower Debt and Deliver Strong, Sustainable Distribution
Coverage
NuStar Energy L.P. (NYSE: NS) announced today that it has
entered into an agreement to sell its European terminals and
related assets to Inter Pipeline Ltd.’s European storage
subsidiary, Inter Terminals Ltd., for $270 million. The operations
include six liquids storage terminals in the United Kingdom and one
facility in Amsterdam. The acquisition is expected to close in the
fourth quarter of 2018, subject to normal closing adjustments.
"The decision to sell our European operations was difficult
given that they are such high-quality assets with such outstanding
employees. However, our European assets are not synergistic with
our other operations and this divestiture is a critical step in the
implementation of a comprehensive plan launched earlier this year
to position NuStar to successfully de-lever and deliver strong,
sustainable distribution coverage for the future," said NuStar
President and CEO Brad Barron.
"We have experienced a fundamental shift in the Master Limited
Partnership (MLP) sector this past year that required some
transformative actions to ensure the long-term financial strength
of the company. We have already taken the steps to simplify our
corporate structure and eliminate the incentive distribution rights
to lower our cost of capital and allow us to continue to build on
the strength of our superior asset base with less dependence on the
equity capital markets. This divestiture is a big step toward
achieving the last component of our plan -- to significantly
lower our debt to strengthen our balance sheet to position NuStar
for long-term success.
"Inter Terminals currently has 16 terminals throughout Europe,
including six in the United Kingdom, and we are pleased that our
European employees will now have the opportunity to be a part of a
strong company with operations that are more operationally and
geographically synergistic with their core business. This should
create more growth opportunities for the operations and more
advancement opportunities for the employees," said Barron.
Wells Fargo Securities, LLC is serving as NuStar’s exclusive
financial advisor on this transaction.
About NuStar Energy L.P.
NuStar Energy L.P., a publicly traded master limited partnership
based in San Antonio, is one of the largest independent liquids
terminal and pipeline operators in the nation. NuStar currently has
more than 9,700 miles of pipeline and 82 terminal and storage
facilities that store and distribute crude oil, refined products
and specialty liquids. The partnership’s combined system has more
than 97 million barrels of storage capacity, and NuStar has
operations in the United States, Canada, Mexico, the Netherlands,
including St. Eustatius in the Caribbean, and the United Kingdom.
For more information, visit NuStar Energy L.P.’s website at
www.nustarenergy.com.
About Inter Pipeline Ltd.
Inter Terminals Ltd. is a wholly owned subsidiary of
Inter Pipeline Ltd., a major petroleum transportation, natural
gas liquids processing, and bulk liquid storage business based in
Calgary, Alberta, Canada. Inter Pipeline owns and operates energy
infrastructure assets in western Canada and Europe. Inter Pipeline
is a member of the S&P/TSX 60 Index and its common shares trade
on the Toronto Stock Exchange under the symbol IPL.
www.interpipeline.com
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version on businesswire.com: https://www.businesswire.com/news/home/20181030005592/en/
NuStar Energy, L.P., San AntonioInvestors, Tim Delagarza,
Manager, Investor RelationsInvestor Relations: 210-918-INVR
(4687)orMedia, Mary Rose Brown, Executive Vice President and Chief
Administrative Officer,Corporate Communications:
210-918-2314website: http://www.nustarenergy.com
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