Limetree Bay Ventures closes $1.25B financing to restart its refinery in St. Croix

ST. CROIX, U.S. Virgin Islands, /PRNewswire/ -- Limetree Bay Ventures announced that it has closed a $1.25 billion financing to restart its refinery located at Limetree Bay, St. Croix, U.S. Virgin Islands. The company is undertaking the project in conjunction with the tolling, supply and offtake agreements that it executed with BP Products North America earlier this month. The common equity in Limetree Bay is owned by affiliates of ArcLight Capital Partners, Freepoint Commodities, and a leading sovereign wealth fund.

"The closing of the financing provides the resources necessary to complete the refinery restart," said Brian Lever, President of Limetree Bay Refining. "We have 1,300 workers currently involved in the project and expect a significant ramp in activity over the coming months as we prepare for restart by the end of next year. We are very grateful to the broad team that has made this possible."

Daniel Revers, Managing Partner and Founder of ArcLight, added, "We are excited to continue building Limetree Bay into an environmentally compliant global energy hub in the U.S. Virgin Islands. The Limetree Bay transaction harnesses ArcLight's deep energy expertise. In particular, ArcLight's current and former ownership of over 100 million barrels of storage capacity has already helped Limetree Bay develop a robust terminal business. We also have a strong history of successfully completing large-scale capital projects. This complex transaction makes full use of ArcLight's suite of specialized capabilities including financial structuring, construction management, implementation of operational best practices, commodity management, human resources, and environmental management. Our operational affiliate, Consolidated Asset Management Services (CAMS), played a key role in these efforts."

The financing comprises $550 million of preferred equity and a $700 million term loan. The preferred equity was led by funds and accounts managed by EIG Global Energy Partners, which was joined by other investors including funds affiliated with BlackRock and Barclays. The term loan was led by Westbourne Capital. In conjunction with the financing, ArcLight also made a significant additional common equity commitment to Limetree Bay.

Barclays acted as lead placement agent and EIG Global Energy Partners Capital Markets, LLC served as co-placement agent on the preferred equity issuance by Limetree Bay.  Goldman Sachs Bank USA and Barclays acted as joint lead arrangers and joint bookrunners on the term loan issuance by Limetree Bay Refining.

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