Global Partners LP (NYSE: GLP) today announced the completion of its acquisition of 100% of the membership interests of Cascade Kelly Holdings LLC, a West Coast crude oil and ethanol facility near Portland, Oregon. The transaction includes a rail transloading facility serviced via short-line track by the BNSF Railway, 200,000 barrels of storage capacity, a deepwater marine terminal with access to a 1,200-foot leased dock and the largest ethanol plant on the West Coast. Situated along the Columbia River in Clatskanie, Oregon, the site is located on land leased under a long-term agreement from the Port of St. Helens. The purchase price, subject to post-closing adjustments, was approximately $95 million.
“The purchase of this crude oil and ethanol facility strategically enhances our network of origin and destination assets, and extends Global’s virtual pipeline to the West Coast,” said Eric Slifka, Global’s president and chief executive officer. “Just as we have for East Coast refiners since 2011, Global can now supply cost-competitive crude from the U.S. and Canadian mid-continent to refiners on the West Coast. The Clatskanie site is linked via the BNSF Railway to our Basin Transload facility in Beulah, ND, facility, where we are constructing a 140,000 barrel tank and truck offloading rack to support crude oil production in the Williston Basin.”
Earlier this month, Global completed the acquisition of a 60% membership interest in Basin Transload LLC for approximately $85 million. To finance both transactions, Global increased its bank credit facility by $115 million and closed a senior unsecured five-year note of $70 million from funds managed by GSO Capital Partners LP, the credit arm of The Blackstone Group.
The Cascade Kelly Holdings transaction is expected to be accretive to unitholders in its first full year of operation, based on current and anticipated future performance as well as economic and market conditions.