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Western Refining Closes on Sale of Assets and Completes Redemption of All Outstanding Senior Secured Floating Rate Notes
By: TexasBusiness.com Posted: Monday, January 2, 2012 12:04 am
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Texas Business reports: EL PASO—Western Refining Inc. closed on the sale of its Yorktown, Virginia facilities and a segment of its crude oil pipeline in southeast New Mexico to Plains Marketing LP and Plains Pipeline LP, both subsidiaries of Plains All American Pipeline LP, for approximately $220 million.
The transaction includes substantially all of Western's Yorktown assets, including both the terminal and idled refinery, and an 82 mile segment of a 424 mile crude oil pipeline in New Mexico.
Western will retain its East Coast wholesale business and continue to market products in the Mid-Atlantic region. Western expects to record a non-cash loss on disposition of these assets of $440 to $460 million for the fourth quarter.
Western Refining also announced that it successfully completed the redemption of its outstanding $275 million senior secured floating rate notes due 2014 on December 21, 2011.
The notes were redeemed at an aggregate redemption price of $288.75 million (including a 5% premium), plus accrued and unpaid interest from December 15, 2011 to December 21, 2011.
“Both of these actions contribute to our stated goal of reducing our debt and strengthening our balance sheet,” said Western chief executive Jeff Stevens in a prepared statement. “We are very pleased with our progress in this area and the added financial flexibility these transactions provide the Company.”
Western Refining Inc. is an independent refining and marketing company headquartered in El Paso.
Western operates refineries in El Paso, and Gallup, New Mexico. Western's asset portfolio also includes refined products terminals in Albuquerque and Bloomfield, New Mexico; asphalt terminals in Phoenix and Tucson, Arizona, Albuquerque, and El Paso; retail service stations and convenience stores in Arizona, Colorado, New Mexico and Texas; a fleet of crude oil and finished product truck transports; and wholesale petroleum products operations in Arizona, California, Colorado, Nevada, New Mexico, Texas, Utah, and Virginia.
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