Holly Energy Partners LP and Holly Corporation announced the August 1, 2009, acquisition by Holly Energy from Holly of certain truck and rail loading/unloading facilities at Holly’s Tulsa OK refinery.
The purchase price for these facilities was $17.5 million, which was paid in cash. This acquisition was financed through Holly Energy’s revolving credit facility. Holly Energy expects this acquisition will result in approximately $2.7 million of incremental annual revenue.
In connection with this transaction, Holly and Holly Energy have entered into a 15-year equipment and throughput agreement. Holly will pay Holly Energy a per-barrel fee for each barrel loaded or unloaded at the facilities.
This transaction has been approved by the boards of directors for both Holly and Holly Energy after approvals by the Holly Audit Committee, which is comprised solely of outside directors of Holly; and the Conflicts Committee for Holly Energy, which consists solely of independent outside directors for Holly Energy.