PBF Logistics LP (PBFX) has entered into a letter of intent to acquire a 50 percent interest in Torrance Valley Pipeline Company LLC (TVPC) from an affiliate of PBF Energy Inc. for a total consideration of approximately $175.0 million in cash.
The execution of definitive agreements is expected within the next 30 days and the closing of the acquisition is anticipated in the third quarter of 2016, subject to customary closing conditions. The acquisition is expected to be financed through a combination of cash on hand, borrowings from a senior secured revolving credit facility and the proceeds of PBFX’s equity offering.
"The potential acquisition of a 50 percent interest in the Torrance Valley Pipeline Company reflects PBFX's ongoing commitment to deliver sustained growth to our unit holders and diversify our earnings base with high-quality assets," said PBFX Chief Executive Officer Thomas Nimbley.
TVPC owns the 189-mile San Joaquin Valley Pipeline system with a throughput capacity of approximately 110,000 barrels per day. The system is comprised of the M55, M1 and M70 pipelines which are the primary crude gathering and transportation lines that supply PBF Energy's Torrance refinery. The assets also include 11 pipeline stations with approximately one million barrels of combined storage capacity and truck unloading capability at two of the stations.
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