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 August 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

ICC Conference Focuses on Platform to Settle Disputes

The 5th ICC International Commercial Mediation Conference has brought together leading mediators, arbitrators, corporate managers and in-house counsel from around

Keystone XL Costs to Nearly Double - TransCanada

The total cost of TransCanada Corp's controversial Keystone XL pipeline is likely to nearly double following six years of regulatory delays, a company spokesman said on Friday.

Chevron To Find Buyers for Hawaiian Refinery

Chevron Corp has hired an investment bank to identify potential buyers of its 54,000 barrel-a-day refinery in Kapolei on the Hawaiian island of Oahu, a company official said.

Navigation

Seagull Maritime Response on Safety, Security

Key areas of concern for seafarer safety and security in both marine and offshore operations have triggered the release of six new and one supplementary titles

FPSO Petrojarl Knarr Delivered to Norway

Three tugs of Fairmount Marine have towed the brand new FPSO Petrojarl Knarr from South Korea to Norway in just 61 days. Petrojarl Knarr, one of world’s largest

New e-Navigation Technologies from Transas

Transas Marine introduced new software solutions for voyage planning and fleet management at SMM 2014 as a step towards becoming the forerunner in the development of e-Navigation technologies.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Navigation Pipelines Pod Propulsion Port Authority Salvage Sonar
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: 0.1489 sec (7 req/sec)