Valero Energy Partners to use revolver, loan borrowings for acquisition

By Tali Rackner

Norfolk, Va., Feb. 27 – Valero Energy Partners LP plans to use $200 million of borrowings under its revolving credit facility and $160 million in borrowings under a five-year subordinated loan agreement with Valero Energy Corp. to help finance its acquisition of certain subsidies of the corporation, according to a press release.

The partnership will also use $211 million of cash and the issuance of 1,908,100 common units, representing limited partner interests and 38,941 general partner units to a subsidiary of Valero valued at $100 million, collectively, to fund the roughly $671 million purchase.

San Antonio-based Valero is an oil refinery owner and operator.

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