ArcLight Capital Partners Announces Closing of $305 Million Financing for AL Gulf Coast Terminals, LLC

BOSTON, July 23 /PRNewswire/ -- AL Gulf Coast Terminals, LLC, a majority owned portfolio company of ArcLight Capital Partners, LLC ("ArcLight"), announced today that it has closed a $305 million financing supported by the ownership interests in its subsidiary, Houston Fuel Oil Terminal Company, LLC ("HFOTCO").   ArcLight invested in HFOTCO in 2007 and increased its ownership to 100 percent in October 2009 by purchasing 50 percent of the business from Motiva Enterprises LLC, a joint venture between Shell and Saudi Refining, Inc.

HFOTCO is the largest provider of crude and residual fuel oil storage in the Gulf of Mexico, with 13.3 mm barrels of storage capacity. The company provides product storage, heating, blending, and transportation services for regional refineries, major integrated oil companies, and trading operations.  HFOTCO's size and strategic location allow it to provide unique blending and storage services, which are critical to many of its customers' businesses.  HFOTCO has begun construction on a fourth deep-water ship dock which will ensure HFOTCO's superior servicing levels to its existing customer base as well as allow the company to execute its plans for additional expansion to accommodate current customer demand.

ArcLight refinanced the existing holding company facility with a $305 million term Loan B facility rated BBB-/Ba2 by S&P and Moody's, respectively.  Barclays Capital was the sole arranger for the financing.  The proceeds from the financing were utilized to repay existing outstanding debt and provide a distribution to the sponsors.  

"We are pleased to have closed this financing and are excited to move forward on our future growth plans at HFOTCO.  We are well positioned with the existing business and remain committed to future expansions to support our customer demand at this highly strategic asset in the U.S. Gulf Coast," said Dan Revers, managing partner at ArcLight. "HFOTCO's strong customer base, significant growth prospects and stellar management team make the business an ideal investment for our Funds," added Mr. Revers. 

ABOUT  HFOTCO:

HFOTCO, strategically located on 310 acres on the Houston Ship Channel, is the largest provider of crude and residual fuel oil storage in the Gulf of Mexico. The company provides product storage, heating, blending, and transportation services for regional refineries, major integrated oil companies, and trading operations.  HFOTCO delivers a unique service to its customers, and is a very liquid point for inter-facility trade, due to its size, strategic location, and extensive transportation infrastructure.  More information about HFOTCO can be found at www.hfotco.com.

ABOUT ARCLIGHT CAPITAL PARTNERS:

ArcLight is one of the world's leading energy investment firms with more than $6.8 billion under management. ArcLight's investment team has extensive energy investing experience, industry relationships, and asset level knowledge. ArcLight is headquartered in Boston, Massachusetts with offices in New York City, London and Luxembourg. More information about ArcLight can be found at www.arclightcapital.com.

SOURCE ArcLight Capital Partners, LLC

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