Buckeye Partners has sold its equity interest in VTTI to Vitol Investment Partnership II Ltd and IFM Investors for $975m. The proceeds from the sale will be used to pay down debt.
This sale was one of several actions previously announced following the completion of Buckeye’s strategic review that were designed to:
- maintain Buckeye’s investment grade credit rating by reducing leverage;
- provide increased financial flexibility, eliminating the need for Buckeye to access the public equity markets to fund annual growth capital; and
- reallocate capital to the higher return growth opportunities across Buckeye’s asset base.
Clark Smith, Buckeye’s Chairman, President and Chief Executive Officer, state: “The completion of these actions will serve to improve Buckeye’s financial flexibility, which, along with our advantaged portfolio of pipeline and terminal assets and attractive growth opportunities, are expected to provide attractive long-term returns for our unitholders.”
In December, Buckeye closed the sale of a package of domestic pipeline and terminal assets that was also announced in conjunction with the completion of its strategic review.
For more information visit www.buckeye.com