Sunoco completes sale of Toledo refinery

By OGJ editors
-- Sunoco Inc., Philadelphia, has completed the previously announced sale of Toledo, Ohio, refinery to Toledo Refining Co. LLC, a wholly owned subsidiary of PBF Holding Co. LLC. The sale price was about $400 million, consisting of $200 million in cash and a $200 million 2-year note.

In addition, the purchase agreement includes a participation payment of up to $125 million based on the future profitability of the refinery, said the Sunoco announcement. Sunoco estimates proceeds for related inventory at $640 million, with $350 million paid in cash at closing and the remaining balance payable in 90 days.

After settlement of related crude payables, the company expects net proceeds to be about $300 million on a pretax basis.

Sunoco’s existing retail marketing and logistics operations in Ohio and neighboring states are not affected by the sale, said the company. It continues to supply refined products to its branded distributors through a long term off-take agreement with PBF.

Sunoco’s retail network in the US Northeast is principally supplied by Sunoco-owned refineries with combined crude oil processing capacities of 505,000 b/d. Sunoco is also the general partner with a 31% interest in Sunoco Logistics Partners LP, a publicly traded master limited partnership that owns and operates 7,600 miles of refined product and crude oil pipelines and about 40 active product terminals.

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