Genesis Energy to draw on revolver for purchase of five energy-related assets

By Sara Rosenberg

New York, April 26 - Genesis Energy LP plans to use borrowings under its $500 million revolving credit facility to fund the cash consideration for its acquisition of five energy-related businesses, according to a company news release.

The company is buying the assets, which are focused on the transportation, storage, marketing and procurement of petroleum products and refinery services, from several entities owned and controlled by the Davison family of Ruston, La.

The total value of the transaction is expected to be about $560 million, subject to potential adjustments, primarily for working capital acquired. The Davisons will receive total consideration of 13.46 million common units and about $280 million in cash.

The acquisition has an effective date of April 1 and is expected to close early in the third quarter.

Genesis Energy is a Houston-based operator of crude oil common carrier pipelines and gatherer and marketer of crude oil and natural gas.

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