CorEnergy Closes $40 Million Acquisition Of Portland Terminal

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Acquired a petroleum products terminal facility in Portland.

CorEnergy Infrastructure Trust Inc. (NYSE: CORR), of Leawood, Kan., announced Jan. 22 that it closed the acquisition of a petroleum products terminal facility in Portland, Ore., for $40 million in cash.

The terminal will be leased to a subsidiary of Arc Logistics Partners LP (NYSE: ARCX) under a long-term triple net lease. The terminal is strategically positioned to support the storage, throughput and transloading needs of the region. Arc Logistics will assume full commerical control of the terminal while CorEnergy provided 100% of the acquisition and improvement capital.

"Our entrance to the West Coast was facilitated by working with CorEnergy to expand our terminal business in a capital-efficient manner,” Vince Cubbage, Arc Logistics CEO, said in the release.

The acquisition price was funded with the net proceeds from CorEnergy’s previously announced issuance of common stock. As a result, CorEnergy’s ratio of total debt to total assets is now about 22%. The company expects to maintain a debt-to-asset ratio of between 25% and 50%. BofA Merrill Lynch was exclusive structuring advisor.