Holly Energy Partners Announces Acquisition of Loading Facilities at Holly Corporation’s Tulsa Refinery
Press Release ;Source: Holly Energy Partners; Holly Corporation DALLAS, Aug. 3, 2009 /PRNewswire-FirstCall/ — Holly Energy Partners, L.P. (“Holly Energy”) and Holly Corporation (“Holly”) today announced the August 1, 2009 acquisition by Holly Energy from Holly of certain truck and rail loading/unloading facilities located at Holly’s Tulsa, Oklahoma refinery.
The purchase price for these facilities was $17.5 million which was paid in cash. The acquisition was financed through Holly Energy’s revolving credit facility. Holly Energy expects this acquisition will result in approximately $2.7 million of incremental annual revenue.
In connection with this transaction, Holly and Holly Energy have entered into a 15-year Equipment and Throughput Agreement. Holly will pay Holly Energy a per barrel fee for each barrel loaded or unloaded at the facilities.
This transaction has been approved by the Boards of Directors for both Holly and Holly Energy after approvals by the Holly Audit Committee, which is comprised solely of outside directors of Holly, and the Conflicts Committee for Holly Energy, which is comprised solely of independent outside directors for Holly Energy.
“Holly Energy is pleased to announce this logistic asset acquisition as we continue to benefit from asset dropdown opportunities coming from Holly’s growth of its refining business. This transaction is another win-win opportunity for Holly Energy and Holly,” said Matt Clifton, Chairman of Holly Energy.