TULSA, Okla.--(BUSINESS WIRE)--SemGroup Energy Partners, L.P. (NASDAQ: SGLP - News) today completed its previously announced acquisition of 46 U.S. liquid asphalt cement and residual fuel oil terminalling and storage facilities from SemMaterials, L.P. for $378.8 million. SGLP also named Jerry A. Parsons executive vice president – asphalt operations. His appointment is effective immediately.The terminalling and storage facilities, located in 23 states, have aggregate storage capacity of approximately 6.6 million barrels and represent substantially all domestic liquid asphalt cement and residual fuel oil terminalling and storage facilities owned by SemMaterials, which is a subsidiary of SemGroup, L.P. The acquisition doubles SGLP’s total storage capacity to 13 million barrels.
SGLP financed the acquisition with net proceeds from its recently completed public offering of 6,000,000 common units and incremental borrowings under its amended credit facility.
In connection with the acquisition, SGLP entered into a terminalling and storage agreement with SemMaterials. SemMaterials will pay SGLP a fee that is based on the number of barrels of liquid asphalt cement that SGLP terminals or stores on behalf of SemMaterials, and SemMaterials commits to use SGLP’s services at a level that will provide SGLP with minimum monthly fees totaling $58.9 million annually.
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