USD Partners completes acquisition of Casper terminal

USD Partners LP (NYSE: USDP) has completed its acquisition of the Casper, Wyoming, crude oil terminal for total consideration of $225 million.

The Casper terminal assets include a unit train capable rail loading terminal, 900,000 barrels of tank capacity for storage and blending operations and a pipeline connection from Spectra Energy Partners LP’s Express crude oil pipeline, currently the primary source of crude oil delivered to the terminal.

The Casper terminal is supported by take-or-pay contracts with primarily investment grade refiners and is expected to contribute approximately $26 million of Adjusted EBITDA in 2016 based on minimum contracted payments. The transaction is expected to be immediately accretive to distributable cash flow per unit.

In addition, on Nov. 13, the Partnership amended its senior secured credit agreement to increase its borrowing capacity from $300 million to $400 million, supported by the Partnership’s existing lenders and by the addition of Goldman Sachs Bank USA to the bank group. The Partnership also reset its ability to request an additional $100 million of incremental revolving credit facility commitments, subject to receiving increased commitments from lenders or other financial institutions and satisfaction of certain conditions. All other terms and conditions of the existing agreement remained unchanged.

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