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United States : PHILLIPS 66 announces its first offering acquisition to $700 million in assets.

Phillips 66 Partners LP announced its first post-initial public offering acquisition will include Phillips 66 s Gold Product Pipeline System and the Medford Spheres, to 2 constructed refinery-grade propylene storage spheres for a total consideration of $700 million.

The drop from Phillips 66 is targeted to occur on March 1, is expected to be accretive to the earnings and distributable cash flow of the partnership.

The size and quality of this acquisition shows the commitment of Phillips 66 to grow and enhance the partnership's portfolio. This positions it to deliver on its strategic plans of achieving top-quartile distribution growth.

The Gold Line System consists of a 681-mile pipeline system that runs from the Phillips 66 operated refinery in Texas to Illinois.

The Medford Spheres with a working capacity of 70,000 barrels and scheduled to commence operation March 1, providing an outlet for delivery of refinery-grade propylene from the Phillips 66 refinery in Texas.

The partnership finances $700 million acquisition with cash on hand of $400 million, the issuance of additional units valued at $140 million and a 5-year, $160 million note payable to a subsidiary of Phillips 66.

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Publication:Mena Report
Date:Feb 21, 2014
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