PBF Logistics LP (PBFX) and PBF Energy Inc (PBF) have agreed to acquire the Toledo Storage Facility from a subsidiary of PBF Energy for US$150 million. The purchase price payable to PBF Energy will consist of cash of $135 million and PBFX limited partner interests of $15 million.
“At the same time, PBF Energy gains additional cash and resources to pursue growth opportunities and to return value to our shareholders.”
The Toledo facility, known as Tank Farm #2, is PBFX’s second asset drop-down acquisition. At the same time, PBF Energy gains additional cash and resources to pursue growth opportunities and to return value to our shareholders.
Tank Farm #2 is located at PBF Energy’s Toledo Refinery and consists of approximately 3.9 million barrels of feedstock and product storage capacity and related facilities, including a propane storage and loading facility.
On closing, the partnership plans to enter into a 10-year term storage and terminal services agreement with subsidiaries of PBF Energy containing storage fees and a minimum throughput volume commitment of 4,400 bpd at the propane storage and loading facility. Tank Farm #2 is expected 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 million.