Divestiture Part of NuStar's Comprehensive Plan to Lower Debt and
Deliver Strong, Sustainable Distribution Coverage
SAN ANTONIO--(BUSINESS WIRE)--Oct. 30, 2018--
NuStar Energy L.P. (NYSE: NS) announced today that it has entered into
an agreement to sell its European terminals and related assets to Inter
Pipeline Ltd.’s European storage subsidiary, Inter Terminals Ltd., for
$270 million. The operations include six liquids storage terminals in
the United Kingdom and one facility in Amsterdam. The acquisition is
expected to close in the fourth quarter of 2018, subject to normal
"The decision to sell our European operations was difficult given that
they are such high-quality assets with such outstanding employees.
However, our European assets are not synergistic with our other
operations and this divestiture is a critical step in the implementation
of a comprehensive plan launched earlier this year to position NuStar to
successfully de-lever and deliver strong, sustainable distribution
coverage for the future," said NuStar President and CEO Brad Barron.
"We have experienced a fundamental shift in the Master Limited
Partnership (MLP) sector this past year that required some
transformative actions to ensure the long-term financial strength of the
company. We have already taken the steps to simplify our corporate
structure and eliminate the incentive distribution rights to lower our
cost of capital and allow us to continue to build on the strength of our
superior asset base with less dependence on the equity capital markets.
This divestiture is a big step toward achieving the last component of
our plan -- to significantly lower our debt to strengthen our balance
sheet to position NuStar for long-term success.
"Inter Terminals currently has 16 terminals throughout Europe, including
six in the United Kingdom, and we are pleased that our European
employees will now have the opportunity to be a part of a strong company
with operations that are more operationally and geographically
synergistic with their core business. This should create more growth
opportunities for the operations and more advancement opportunities for
the employees," said Barron.
Wells Fargo Securities, LLC is serving as NuStar’s exclusive financial
advisor on this transaction.
About NuStar Energy L.P.
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 more than 9,700
miles of pipeline and 82 terminal and storage facilities that store and
distribute crude oil, refined products and specialty liquids. The
partnership’s combined system has more than 97 million barrels of
storage capacity, and NuStar has operations in the United States,
Canada, Mexico, the Netherlands, including St. Eustatius in the
Caribbean, and the United Kingdom. For more information, visit NuStar
Energy L.P.’s website at www.nustarenergy.com.
About Inter Pipeline Ltd.
Inter Terminals Ltd. is a wholly owned subsidiary of Inter Pipeline
Ltd., a major petroleum transportation, natural gas liquids processing,
and bulk liquid storage business based in Calgary, Alberta, Canada.
Inter Pipeline owns and operates energy infrastructure assets in western
Canada and Europe. Inter Pipeline is a member of the S&P/TSX 60 Index
and its common shares trade on the Toronto Stock Exchange under the
symbol IPL. www.interpipeline.com
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Source: NuStar Energy L.P.
NuStar Energy, L.P., San Antonio
Investors, Tim Delagarza, Manager,
Investor Relations: 210-918-INVR (4687)
Mary Rose Brown, Executive Vice President and Chief Administrative
Corporate Communications: 210-918-2314