The purchase price is approximately $315.0 million in cash. This dropdown is expected to be financed through a combination of cash on hand and borrowings on the revolving credit facility and is expected to close in March with an effective date of March 1, 2018.
In connection with the closing of the transaction, Delek US, Delek Logistics and various of their subsidiaries will enter into various long-term agreements for these assets. In addition, a new marketing agreement will be entered into between the companies for product sales from Big Spring.
The transaction and related agreements were approved by the Conflicts Committee of Delek Logistics’ general partner, which is comprised solely of independent directors. The Conflicts Committee engaged Duff & Phelps to act as its financial advisor and Orrick, Herrington & Sutcliffe LLP to act as its legal counsel. J.P. Morgan Securities LLC served as exclusive financial advisor to Delek US. Baker Botts represented Delek US in the transaction.
Baker Botts Lawyers/Office Involved:
Corporate: A.J. Ericksen (Partner, Houston), Leslie Daniel (Associate, Houston), Bill Pritchett (Associate, Houston), Mitch Athey (Associate, Houston)
Tax: Mike Bresson (Partner, Houston), Matthew Larsen (Partner, Dallas), Jared Meier (Senior Associate, Houston), Jacob Walley (Associate, Houston)
Energy Projects: Dan Mark (Partner, Houston)
Environmental: Scott Janoe (Partner, Houston)
For more information, please see Delek US’ news release by clicking here.
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