Valero Energy Partners to draw on revolver for part of asset purchase

By Wendy Van Sickle

Columbus, Ohio, Aug. 22 – Valero Energy Partners LP will draw down on its revolving credit facility to fund part of a $325 million acquisition of terminal service business assets from a subsidiary of Valero Energy Corp., according to a press release.

The partnership also expects to partially fund the acquisition with cash on hand and the issuance of additional common units and general partner units to Valero subsidiaries.

The assets to be acquired include terminals that support Valero’s Meraux and Three Rivers refineries. The Meraux assets consist of 24 tanks with 3.9 million barrels of storage capacity for crude oil, intermediates and refined petroleum products. The Three Rivers assets consist of 62 tanks with 2.25 million barrels of storage capacity, according to the release.

The transaction is expected to close Sept. 1.

Valero Energy Partners is a San Antonio-based master limited partnership formed by Valero to own, operate, develop and acquire crude oil and refined products pipelines, terminals and other transportation and logistics assets.

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