Prostar Capital has agreed to acquire an oil storage terminal facility on Saint Eustatius from NuStar Energy LP for about $250 million. The deal is expected to close by the end of the second quarter of 2019.
GREENWICH, CT, May 10, 2019 – Prostar Capital (“Prostar”), a private investment firm focused on midstream energy infrastructure assets, today announced that it has signed a definitive agreement to acquire 100% of an oil storage terminal facility on Saint Eustatius from NuStar Energy L.P. (NYSE: NS). The purchase price is approximately $250 million, subject to customary closing conditions and adjustments, and the transaction is expected to close by the end of the second quarter of 2019.
The Saint Eustatius Terminal consists of 60 commercial tanks and associated deep water jetties and pipelines, with a total storage capacity of 2.3 million cubic meters. It is conveniently located in the Caribbean region to serve key trading countries.
“We are excited to be acquiring a high-quality terminal facility with many key strategic advantages, including a location at the crossroads of global and regional oil trade, long-term customer relationships with major global oil traders, a strong local operations team, and a highly flexible infrastructure that allows for capacity expansion as growth opportunities arise,” said Steve Bickerton, Senior Managing Director of Prostar.
“The acquisition of the Saint Eustatius Terminal is consistent with Prostar’s sharply defined approach to creating value by acquiring, managing and improving the performance of middle market assets that are positioned to benefit from the global demand for energy,” added Dave Noakes, Senior Managing Director of Prostar.
“We are pleased that this sale allows us to re-deploy the sales proceeds here at home to continue to improve our financial metrics and fund our growth projects for our core business in North America,” said Brad Barron, President and Chief Executive Officer of NuStar Energy. “We are also very gratified to be able to hand over the reins to purchasers with a business model that ensures a bright future for the facility and its employees.”
About Prostar Capital
Prostar Capital is a private investment firm established in 2012 to invest in global midstream energy infrastructure assets that it believes are strategically positioned to serve growing global energy demand. The firm invests in assets that are focused on the gathering, processing, storage, transmission and distribution of energy. Prostar’s management team is comprised of experienced professionals with decades of real asset investment and operational expertise. Prostar has originated and managed energy infrastructure investments representing more than $400 million of equity capital invested. Prostar operates from offices in Sydney, Hong Kong and Greenwich, Connecticut. For more information, visit Prostar’s website at www.prostarcapital.com.
About NuStar Energy
NuStar Energy L.P., a publicly traded master limited partnership based in San Antonio, is one of the largest independent liquids terminal and pipeline operators in the nation. NuStar currently has approximately 9,800 miles of pipeline and 75 terminal and storage facilities that store and distribute crude oil, refined products and specialty liquids. The partnership’s combined system has more than 88 million barrels of storage capacity, and NuStar has operations in the United States, Canada, Mexico and St. Eustatius in the Caribbean. For more information, visit NuStar Energy L.P.’s website at www.nustarenergy.com.