Buckeye Partners LP agreed to acquire 80% of Trafigura AG’s membership interests in the entity holding its Eagle Ford midstream assets in South Texas, Trafigura Terminals LLC. The total agreed-upon transaction value was $860 million before customary post-closing adjustments. Closing of the transaction is subject to pending regulatory approval.
Trafigura AG will maintain a 20% interest in Trafigura Terminals and will keep commercial rights to use all of the assets. Assets include:
- Texas Dock & Rail, a deepwater, high volume marine terminal on the Corpus Christi Ship Channel;
- EF90, a condensate splitter and LPG storage complex; and
- Trafigura Field Services, crude gathering facilities serving the Eagle Ford Shale.
Citigroup served as the exclusive financial advisor to Trafigura for the transaction.
Buckeye Partners also announced the commencement of a public offering of 5.5 million limited partnership units representing limited partner interests, pursuant to an effective shelf registration statement. Buckeye Partners plans to grant the underwriters an option to purchase up to 825,000 additional units. The company intends to use the net proceeds from the offering to fund a portion of the transaction with Trafigura and for general partnership purposes.
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