Martin Midstream Partners LP (NASDAQ:MMLP) has entered into a definitive agreement with NuStar Logistics LP to sell certain of its terminalling assets located in Corpus Christi, Texas for gross consideration of $107 million plus the reimbursement of certain capital expenditures and prepaid items.
The partnership is selling its 900,000 barrel crude oil storage terminal commonly known as the Corpus Christi crude terminal, its refined product barge terminal, certain pipelines and related easements as well as dockage and trans-loading assets. MMLP expects to receive net proceeds of approximately $93 million after transaction fees and expenses, in addition to certain cash payments previously received by the partnership in conjunction with its mandated relocation of certain dockage assets.
Ruben Martin, president and CEO of Martin Midstream GP LLC said, “While these assets have historically performed well for the partnership, they are not critical to its success moving forward. Given our focus on reduction of leverage, we feel this asset sale and distribution right-sizing are prudent moves for the Partnership at this time.”
The transaction is subject to customary closing conditions, including antitrust approval. The deal is expected to close prior to year-end 2016. Simmons & Company International served as exclusive financial advisor to MMLP on the transaction.