Buckeye Acquires Remaining Borco Stake

Vopak will exercise its tag-along rights to sell its 20% stake in Bahamas Oil Refining Company (Borco) to Buckeye Partners. Vopak, a Dutch tank storage service provider, will receive approximately $168m in cash and $100m in equity in the Texas-based pipeline and storage terminal operator. Buckeye was advised by Barclays. In December, Buckeye announced it would acquire 80% of Borco from First Reserve for $1.36bn. Buckeye says it will finance the acquisition with the same facilities it used for its initial purchase. This includes a $650m 10-year senior note offering with a 4.875% coupon, and a senior unsecured bridge facility of up to $775m through Barclays, SunTrust Robinson Humphrey and SunTrust Bank.