NuStar Energy closes on sale of Eastern US terminals to Sunoco LP for $250m
NuStar Energy LP has announced that it has closed on the sale of its Eastern US Terminals to Sunoco LP for $250 million.
The Eastern US Terminals are comprised of eight terminal locations: Andrews AFB in Washington, DC, Baltimore, MD, Blue Island, IL, Jacksonville, FL, Linden, NJ, Paulsboro, NJ, Piney Point, MD, and Virginia Beach, VA. The companies first announced this sale on August 2, 2021.
“This divestiture will allow us to deploy the proceeds to further improve our debt metrics, and we continue to expect to self-fund our spending from our internally generated cash flows, in 2021 and beyond,” said Brad Barron, president and CEO of NuStar.
“With regard to 2021 capital spending estimates, we expect to now spend $140 to $160 million on strategic capital, all of which will be funded by internally generated cash flows. In addition, we expect to spend $35 to $45 million on reliability capital for the year.”
“While these terminals are solid assets with great operations and employees, these facilities are no longer synergistic with NuStar’s core assets,” Barron added. “Sunoco LP has assets in NY Harbour and in the Southeast US that should provide key synergistic opportunities to build on the success of these facilities.
“We are happy to pass the reins for the Eastern US Terminals to Sunoco LP, a company with industry experience and operational synergies that will benefit the facilities, as well as the employees, now and in the future.”
Barclays served as exclusive financial adviser to NuStar on the transaction.
For more information visit www.nustarenergy.com
12th October 2021