CorEnergy Infrastructure Trust, Inc. (“CorEnergy”) (NYSE: CORR) today announced that it has entered into a definitive agreement to acquire a petroleum products terminal facility (the “Portland Terminal Facility”) for $40 million in cash. The terminal is expected to be leased to a subsidiary of Arc Logistics Partners LP (“Arc Logistics”) (NYSE: ARCX) 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.
CorEnergy will finance the acquisition cost with cash expected to be raised through our simultaneously announced equity offering at the time of closing.
The key characteristics of the Portland Terminal Facility 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
"This transaction is supportive of our commitment to provide shareholders with long-term distribution growth,” said David Schulte, Chief Executive Officer of CorEnergy. “Our Board of Directors has already confirmed its intent to increase the quarterly distribution from $0.125 to $0.130 upon completion of the transaction."
The Portland Terminal Facility
The Portland Terminal Facility is a rail/marine facility property adjacent to the Willamette River in Portland, Oregon. The 39-acre site has 84 tanks with a total storage capacity of 1,466,000 barrels. The Portland Terminal Facility is capable of receiving, storing and delivering heavy and refined petroleum products. Products are received and/or delivered via railroad, marine (up to Panamax size vessels) or truck loading rack. The marine facilities are accessed through a neighboring terminal facility via an owned pipeline. The Portland Terminal Facility offers heating systems, emulsions and an on-site product testing laboratory as ancillary services.