Andeavor Logistics completes acquisition of Western Refining Logistics
SAN ANTONIO, TEXAS — Andeavor Logistics LP and Andeavor announced that Andeavor Logistics has completed its acquisition of Western Refining Logistics, LP in a unit-for-unit transaction and assumption of $280 MM of net debt for a total enterprise value of approximately $1.7 B, based on Andeavor Logistics' closing unit price of $45.90 on Oct. 30.
Western Refining Logistics unitholders will receive the Andeavor Logistics quarterly cash distribution for the third quarter 2017 after they have exchanged their WNRL units for Andeavor Logistics units, but will not receive a separate quarterly cash distribution with respect to WNRL. The third quarter distribution will be paid Nov. 14 to all Andeavor Logistics unitholders of record as of Nov. 3. As previously announced on Oct. 18, the distribution of $0.9852 per unit represents a 1.5% increase over the previous quarterly distribution.
Upon the closing of the merger between Andeavor Logistics and WNRL, Andeavor Logistics also issued 78.0 MM of its common units to Andeavor in exchange for the cancellation of Andeavor Logistics' incentive distribution rights and the conversion of its economic general partner interest into a non-economic general partner interest. Andeavor will continue to own the non-economic general partner interest in Andeavor Logistics and hold approximately 127 MM Andeavor Logistics common units, representing approximately 59% of the common units outstanding. The 78.0 MM Andeavor Logistics common units represent $3.6 B in value based on Andeavor Logistics' closing unit price of $45.90 on Oct. 30.
Andeavor Logistics continues to expect at least $1 B of annual growth investments over the next several years consisting of at least $500 MM to $600 MM in organic growth and acquisitions and the potential for $400 MM to $500 MM in drop downs from Andeavor. The Company remains committed to achieving its targeted annual distribution growth of 6% or greater, distribution coverage ratio of approximately 1.1 times and debt-to-EBITDA at or below 4.0 times. As previously announced, Greg Goff will continue to serve as Chairman and Chief Executive Officer, and Steven Sterin will continue to serve as President and Chief Financial Officer of the general partner of Andeavor Logistics.
Comments