BGH GP Holdings begins $17-per-unit offer for Buckeye GP Holdings

By Lisa Kerner

Charlotte, N.C., Nov. 5 - BGH GP Holdings, LLC began its tender offer for all of the outstanding common units of Buckeye GP Holdings LP for $17 per unit in cash.

The tender offer will expire at 5 p.m. ET on Dec. 5, unless extended, a BGH GP news release said.

It was previously reported that BGH GP would take Buckeye private for total consideration of approximately $180 million.

Currently, BGH GP owns 61% of Buckeye's outstanding common units and 100% of MainLine Management LLC, the general partner that controls Buckeye.

The offer is conditioned on the tender of sufficient common units to give BGH GP ownership of more than 90% of the outstanding common units, the release said.

Once the offer is completed, BGH GP will exercise its limited call right under its partnership agreement to acquire any remaining common units at the same $17-per-unit price.

Buckeye will then become a privately held, wholly owned subsidiary of BGH GP, and its common units will cease to trade on the New York Stock Exchange.

The depositary for the tender offer is the Computershare Trust Co., NA, and the information agent is Innisfree M&A Inc. (888 750-5834).

Affiliates of ArcLight Capital Partners, LLC and Kelso & Co. primarily own BGH GP, a limited-liability company.

Buckeye, through its general partner interests in Buckeye Partners, LP, transports and stores refined petroleum products for integrated oil companies, refined products marketing companies and users of petroleum products. The company is based in Breinigsville, Pa.

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