PBF Logistics Reports Acquisition Of Toledo Tank Farm From PBF Energy

(RTTNews) - PBF Logistics LP (PBFX) and PBF Energy Inc. (PBF) said the Partnership has executed an agreement to acquire the Toledo Storage Facility from an unit of PBF Energy for $150 million. The purchase price payable to PBF Energy would include cash of $135 million and PBFX limited partner interests of $15 million. The drop-down acquisition may close on or about December 12, 2014.

PBFX and PBF Energy Chief Executive Officer Thomas Nimbley said, "Tank Farm #2 is PBFX's second asset drop-down acquisition and reflects our ongoing commitment to deliver growth to PBFX's unit holders."

Tank Farm #2 is located at PBF Energy's Toledo Refinery and comprises nearly 3.9 million barrels of feedstock and product storage capacity and related facilities, including a propane storage and loading facility.

Upon completion, the Partnership intends to sign a 10-year term storage and terminaling services agreement with divisions of PBF Energy containing storage fees and a minimum throughput volume commitment of 4,400 barrels per day at the propane storage and loading facility. Tank Farm #2 is likely to contribute approximately $15.1 million of EBITDA in its first full year of operation after the close. Annual maintenance capital expenditures are expected to average approximately $3.0 million.

The cash consideration for the transaction will be funded by the sale of $30 million in U.S. Treasuries that were purchased with proceeds from the Partnership's May 2014 IPO and anticipated borrowings under the Partnership's revolving credit facility of $105 million.