NuStar Energy LP has announced that it has closed on the sale of its oil storage terminal on the island of St. Eustatius in the Caribbean, as well as related assets, to Prostar Capital for US$250 million, plus normal closing adjustments. The companies first announced this sale in May 2019.
“Selling the Caribbean terminal at an attractive multiple allows us to redeploy the sales proceeds to continue to lower our leverage and to fund growth projects in our core North American business, further allowing us to focus our resources on building on our core asset base, as well as continuing to strengthen our financial metrics to generate stable, consistent growth for our unitholders,” said NuStar President and CEO Brad Barron.
“It was a difficult decision to divest the terminal given that it is such a high-quality asset with outstanding employees, but it had become increasingly clear that a different business model was needed to ensure the long-term success of the facility and that the best path forward for its success and NuStar’s success was to sell the terminal to an entity that can take advantage of the changing global crude trade flow patterns,” Barron added. “We were pleased to find a buyer with such a business model in Prostar.
“Our St. Eustatius employees will now have the opportunity to be a part of a company with a business plan that is better aligned to take advantage of the terminal’s location and operational strengths,” Barron said. “This should create more growth opportunities for the operations and more advancement opportunities for the employees.”
Read the article online at: https://www.hydrocarbonengineering.com/tanks-terminals/30072019/nustar-energy-closes-on-its-sale-of-its-st-eustatius-terminal-to-prostar-capital/