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CorEnergy Infrastructure Trust, Inc. (“CorEnergy”) (NYSE: CORR) today announced that it has closed its previously announced acquisition of a petroleum products terminal facility (the “Portland Terminal Facility”) for $40 million in cash. The terminal will 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.
“We are pleased to add our fourth energy infrastructure asset and execute another participating operating lease," said David Schulte, Chief Executive Officer of CorEnergy. "We enabled Arc Logistics to assume full commercial control of the Portland Terminal Facility, while providing 100% of the acquisition and improvement capital.”
"Our entrance to the West Coast was facilitated by working with CorEnergy to expand our terminal business in a capital-efficient manner,” said Vince Cubbage, Chief Executive Officer of Arc Logistics.
CorEnergy paid $40 million in cash for the purchase of the Portland Terminal Facility. The acquisition price was funded with the net proceeds from CorEnergy’s previously announced issuance of common stock. As a result of the transaction, CorEnergy’s ratio of total debt to total assets is now approximately 22 percent. Longer-term, CorEnergy expects to maintain a debt-to-asset ratio of between 25 and 50 percent.
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.