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Par Pacific closes acquisition of Wyoming Refining Company

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Hydrocarbon Engineering,

Par Pacific Holdings, Inc. has successfully completed its acquisition of Hermes Consolidated, LLC (dba Wyoming Refining Company) for a total consideration of approximately US$271.4 million, including the assumption of approximately US$58 million of debt. The acquisition was funded using a combination of net proceeds from the company's offering of US$115 million aggregate principal amount of 5.00% Convertible Senior Notes due 2021 that closed in June 2016, an offering of US$52.6 million aggregate principal amount of 2.50% Convertible Subordinated Bridge Notes that closed contemporaneously with the acquisition, a US$65 million term loan to a newly established subsidiary of Par Pacific that closed contemporaneously with the acquisition, and cash on hand. Par Pacific intends to repay the Bridge Notes, or a portion thereof, with proceeds from an anticipated US$50 million offering of transferrable subscription rights to purchase common stock.

The refinery is located in Newcastle, Wyoming, and has a processing capacity of 18 000 bpd, as well as related logistics assets throughout the region. One of Wyoming Refining Company's primary downstream markets is the Rapid City, South Dakota, area, which has several national parks and monuments in the region that attract millions of visitors annually, particularly in the summer months.

"This accretive acquisition adds geographic diversification and demonstrates the continuing execution of our growth strategy," said William Pate, Par Pacific's President and Chief Executive Officer. "The refinery combined with the logistics assets gives us access to advantaged feedstocks and growing niche refined products markets. We are pleased to welcome Wyoming Refining's management and employees to the Par Pacific organisation and look forward to future success."

Adapted from press release by Rosalie Starling

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