Pipeline operator Buckeye Partners will buy an 80% stake in Bahamas Oil Refining Co. from private equity firm First Reserve Corp., in a deal valued at $1.36 billion, Reuters said. Under the terms of the deal, Buckeye will issue about 4.4 million limited partner units of a new class of interests at $57.04 each to First Reserve, Reuters said.
(Reuters) – U.S. pipeline operator Buckeye Partners LP agreed to buy an 80 percent interest in Bahamas Oil Refining Co International (BORCO) from private equity firm First Reserve Corp in a $1.36 billion deal.
As part of the deal, Buckeye will issue about 4.4 million limited partner units of a new class of interests at $57.04 each to First Reserve, resulting in proceeds of $250 million, the company said.
First Reserve will also get about 2.5 million Buckeye units at $60.40 each, about 6 percent discount to their Friday close, with proceeds of $150 million.
Buckeye Partners said the deal is expected to immediately add 10 percent to its distributable cash flow per limited partner unit.
“This acquisition is a natural fit for Buckeye’s core business and significantly expands our market reach by adding a global logistics hub to our portfolio of assets,” Buckeye. Chief Executive Forrest Wylie said in a statement.
(Reporting by Krishna N Das in Bangalore; Editing by Gopakumar Warrier)