Martin Midstream Acquires Marine Services Assets

Monday, December 29, 2003
Martin Midstream Partners L.P. has completed the acquisition of marine services assets from Tesoro Marine Services, L.L.C., a subsidiary of Tesoro Petroleum Corporation, a refiner and marketer of petroleum products. MMLP purchased assets associated with Tesoro's shore based marine activities for $25 million plus approximately $1.8 million for Tesoro's lube oil inventories. The assets acquired include 13 marine terminals located along the Gulf Coast from Venice, Louisiana to Corpus Christi, Texas, nine tank barges and four pushboats as well as Tesoro's lubricant distribution and marketing business. Acquisition financing was provided through an expansion of MMLP's existing credit facility with Royal Bank of Canada from $60 million to $80 million. After giving effect to the consummation of this transaction, MMLP's borrowings under its credit facility include $25 million of previously existing term debt and $40 million of revolving debt, including $27 million incurred in connection with the Tesoro transaction and $3 million incurred in connection with the previously announced acquisition of a terminal and three vessels. In a parallel transaction, Midstream Fuel Service LLC purchased Tesoro's fuel oil distribution business for $2 million plus approximately $4.8 million for Tesoro's diesel fuel inventories. Midstream Fuel Service is a subsidiary of privately held Martin Resource Management Corporation ("MRMC"), the owner of MMLP's general partner. MRMC acquired these assets from Tesoro because fuel oil distribution generates non-qualifying income under Internal Revenue Service regulations applicable to publicly traded limited partnerships such as MMLP. However, pursuant to contractual arrangements between MRMC and Martin Midstream Partners, MMLP will provide marine transportation and storage services to Midstream Fuel Service. Financing for the assets acquired by MRMC was provided through an expansion of MRMC's existing credit facility. Ruben Martin, Chief Executive Officer of Martin Midstream GP LLC, MMLP's general partner, stated, "We are pleased to have completed our first major acquisition since our initial public offering last year. We believe that the acquisition of Tesoro's marine services business complements our current marine transportation, terminalling and distribution operations along the Gulf Coast."
Maritime Reporter September 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

World’s 1st LNG Hybrid Barge Christened "Hummel"

The world’s first LNG hybrid barge of Becker Marine Systems was christened with the name "Hummel" on October 18, 2014, at Grasbrook Quay in HafenCity Hamburg.

Shadrin is D.G. of Gazprom Investholding

On October 13 the Gazprom leadership acceded to Alisher Usmanov's request for releasing him from his position as Director General of Gazprom Investholding. At the meeting Alexey Miller,

A2SEA Signs for Dudgeon

Dudgeon Offshore Wind Limited has awarded the Charter for WTG transport and installation to A2SEA A/S. A2SEA shall provide the jack-up vessel Sea Installer

Navigation

Open Ship a Success

Amaliekajen was buzzing with life during Culture Night, when the Danish Maritime Authority’s vessel Poul Løwenørn lowered the gangway and invited everyone interested on board.

Video: New Channel Established on Atchafalaya River

The U.S. Coast Guard (USCG) helped establish Crewboat Cut as a new federal channel in the Atchafalaya River near Morgan City, Wednesday. The new waterway is intended to be safer for mariners,

Maritime Reporter @ 75: The Daily Cartoon

Maritime Reporter & Engineering News was founded by John J. O'Malley (1905-1980) in 1939, and today ranks as the world's largest audited trade publication in the world serving the maritime industry,

 
 
Maritime Careers / Shipboard Positions Maritime Standards Navigation Pipelines Pod Propulsion Salvage Ship Repair Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1456 sec (7 req/sec)