Westlake buys 2.7 pc more interest in Westlake OpCo $135 mn

Westlake buys 2.7 pc more interest in Westlake OpCo for $135 mn

7:13 AM, 30th April 2015
Westlake buys 2.7 pc more interest in Westlake OpCo for $135 mn
Albert Chao, president and chief executive officer, Westlake Partners.

HOUSTON, US: Westlake Chemical Partners LP said it has acquired approximately 2.7 per cent of additional limited partner interest in Westlake Chemical OpCo LP for approximately $135 million.

Additionally, Westlake Partners has established a $300 million revolving credit facility with a wholly owned subsidiary of Westlake Chemical Corp to fund acquisitions and for general corporate purposes.

With this transaction Westlake Partners has increased its interest in OpCo from about 10.6 per cent to about 13.3 per cent. Also the transaction, which closed today, is expected to be immediately accretive to Westlake Partners’ distributable cash flow.

OpCo’s assets are comprised of three ethylene production facilities and OpCo sells approximately 95 per cent of its ethylene production to Westlake under a long-term supply agreement, which provides for a stable $0.10 margin per pound.

“OpCo is unique given the long-term and stable nature of its key contracts and the structure of its business. Moreover, Westlake Partners can pursue organic growth opportunities such as capacity expansions in OpCo’s ethylene production facilities and acquisitions of other qualified assets from third parties,” said Albert Chao, president and chief executive, Westlake Partners.

The company is currently executing its previously announced capacity expansion project at one of OpCo’s ethylene crackers in Lake Charles, Louisiana. “This expansion is expected to increase OpCo’s ethylene production capacity by about 250 million pounds once completed during the first half of 2016 and thereafter, will enhance Westlake Partner’s revenue and cash available for distribution,” added Chao.

The terms of the acquisition were approved by a conflicts committee, which is comprised entirely of independent directors of the board of directors of Westlake Chemical Partners GP LLC, the general partner of Westlake Partners. This committee was advised by Tudor, Pickering, Holt & Co as to financial matters and Akin Gump Strauss Hauer & Feld LLP as to legal matters. Westlake Chemical Corporation was advised by UBS Investment Bank and legal counsel was provided by Vinson & Elkins LLP.

© Worldofchemicals News 

0 Comments

Login

Your Comments (Up to 2000 characters)
Please respect our community and the integrity of its participants. WOC reserves the right to moderate and approve your comment.

Related News


BASF starts trial production of mononitrobenzene in China

CHONGQING, CHINA: The largest chemical company BASF AG said it has begun trial operations at the mononitrobenzene plant within the integrated 400,000 ...

Read more
Grace gives Unipol PP technology to Yuntianhua subsidiary in China

COLUMBIA, US: Chemical company W. R. Grace & Co said it will provide its Unipol ® polypropylene (PP) technology to Yunnan Yuntianhua PetroChem ...

Read more
Albemarle gives update on global business units realignment

BATON ROUGE, US: Chemical company Albemarle Corporation provided an update for realigning its global business units, resulting from Rockwood ...

Read more
Technip bags PMC contract for upgrading Basra refinery in Iraq

PARIS, FRANCE: Engineering company Technip SA said, in partnership with UNICO, a Japanese engineering consultant, it was awarded a project management ...

Read more
Sika approaches FINMA regarding disclosure duty breach

BAAR, SWITZERLAND: Specialty chemicals company Sika AG said it submitted a notice to FINMA of a possible breach of disclosure duty by the Burkard heir ...

Read more
A. Schulman initiates a public offering of $110 million special stock

AKRON, US: Chemical company A. Schulman Inc said it has initiated a public offering of $110 million aggregate liquidation preference of cumulative per ...

Read more