Dakota Plains Holdings Inc. acquired all the ownership interests in its oil transloading joint venture (JV), sand transloading JV and oil marketing JV. The previously announced sale of its interest in its trucking JV closed on Nov. 24.
Under the terms of the transaction, Dakota Plains paid its former JV partner a consideration of $43 million in cash and will make future contingent payments equal to 22.5 cents per barrel (bbl) for crude oil loaded at the Pioneer Terminal, up to 80,000 bbl per day. Payments will be made quarterly through Dec. 31, 2026. Dakota Plains will receive $8.9 million in cash distribution from the termination of the JVs. SunTrust Robinson Humphrey Inc. acted as financial adviser to Dakota Plains in connection with this transaction.
Dakota Plains also announced a new $57.5 million credit facility with SunTrust Bank to fund the transaction and to refinance $7.7 million in senior unsecured promissory notes and $6.4 million in debt from construction of the Pioneer Terminal.
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