Gibson Energy
South Texas Terminal Gibson 64cd073459f9f

Gibson closes on Texas terminal acquisition

Aug. 4, 2023
Canadian liquid infrastructure company acquires South Texas Gateway Terminal—a bulk liquids storage and export facility in Ingleside, Texas—for $1.1 billion

Gibson Energy, headquartered in Calgary, Alberta, Canada, recently completed its acquisition of the South Texas Gateway Terminal, a “world class” bulk liquids storage terminal and export facility in Ingleside, Texas, near the Port of Corpus Christi.

The $1.1 billion purchase, which included Gibson acquiring 100% of the membership interests in the terminal—which offers very large crude carrier capabilities and direct pipeline connections to the prolific Permian and Eagle Ford basins—was partially funded by the proceeds of the company’s $403 million bought deal offering of subscription receipts.

“Today is an exciting day for Gibson as we close the highly strategic acquisition of the South Texas Gateway Terminal, which reinforces our position as a leading liquids-focused infrastructure business,” Steve Spaulding, Gibson president and CEO, said in a news release. “Our focus will now turn to safely integrating the asset into our portfolio, welcoming new team members, and supporting the needs of existing and new customers across North America, while pursuing new growth opportunities.”

With the closing of the transaction, each outstanding subscription receipt will be automatically exchanged, without payment of additional consideration and without further action, for one common share of Gibson, the company reported. In addition, holders of subscription receipts will be entitled to receive a dividend equivalent cash payment of $0.39 per receipt.

Concurrent with the closing, Gibson also closed an amendment to increase the size of its sustainability-linked revolving credit from $750 million to $1 billion.

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