CorEnergy to acquire petroleum products terminal

CorEnergy Infrastructure Trust, Inc. has announced that it has entered into a definitive agreement to acquire a petroleum products terminal facility for US$ 40 million in cash. The terminal is expected to be leased to a subsidiary of Arc Logistics Partners LP under a long term triple net lease. Located in Portland, Oregon, the terminal is strategically positioned to support the storage, throughput and transloading needs of the region.

The acquisition will be financed with cash expected to be raised through the simultaneously announced equity offering at the time of closing.

Portland terminal facility

The key characteristics of the terminal satisfy CorEnergy’s targeted strategy and investment criteria, including;

• Multimodal terminal with rail, truck and shipping access points.
• Growth and development via a planned improvement project.
• Steady revenue stream over a 15 year term with a significant portion fixed.
• Additional participating rent based on throughput volumes provides upside potential.

Comments

David Schulte, CEO of CorEnergy said, ‘this transaction is supportive of our commitment to provide shareholders with long term distribution growth. Our board of directors has already confirmed its intent to increase the quarterly distribution from US$ 0.125 to US$ 0.130 upon completion of the transaction.’

Adapted from a press release by Claira Lloyd.

Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/16012014/petroleum_terminal_acquisition_corenergy56/