PBF Logistics plans revolver draw to fund storage asset purchase

By Susanna Moon

Chicago, July 17 – PBF Logistics LP said it plans to draw from its revolving credit facility to finance its planned purchase of some storage assets for $107 million.

PBF has entered into an agreement with Crown Point International, LLC, formerly known as Axeon Specialty Products LLC, to purchase its wholly owned subsidiary CPI Operations LLC, whose assets include a storage facility and other idled assets located on the Delaware River near Paulsboro, N.J.

The transactions also will be funded using cash on hand and new common unit issues, according to a company announcement.

The total price for the assets will consist of an initial payment at closing of $75 million with the balance being payable one year after closing.

After closing, the partnership expects to invest about $8.5 million over the next two years in projects to enhance facility capabilities and expects to achieve run-rate EBITDA of $15.5 million at the end of 2020.

The transaction is expected to close in the fourth quarter.

Pro forma leverage is expected to remain within the company’s long-term net-debt-to-EBITDA target of 3 to 4 times.

“The partnership does not anticipate the requirement to issue additional equity to support these accretive growth transactions and projects,” the release added.

The crude oil pipeline transportation and terminal services provider is based in Parsippany, N.J.

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