Gibson Energy Inc. completed the acquisition of South Texas Gateway Terminal LLC from Buckeye Partners, L.P. and others.
August 31, 2023
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Gibson Energy Inc. (TSX:GEI) entered into an agreement to acquire South Texas Gateway Terminal LLC from Buckeye Partners, L.P. and others for $1.1 billion on June 14, 2023. Under the terms of the transaction, Gibson Energy will acquire 100% membership interests of South Texas Gateway Terminal LLC for a total purchase price of $1.1 billion in cash, subject to closing adjustments. Gibson has fully committed bridge financing facilities totaling $1.1 billion in place from with Royal Bank of Canada, BMO Capital Markets, and JPMorgan Chase Bank N.A., Toronto Branch; with a permanent financing of the transaction expected to be achieved through a $262.3 million (CAD 350 million) bought deal offering of subscription receipts (the ?Equity Offering?) and subsequent offerings of senior unsecured medium-term notes and hybrid debt securities of various tenors (the ?Debt Offerings?). The transaction is subject to satisfaction of customary closing conditions, including receipt of all required regulatory approvals and the expiration or termination of the waiting period under the U.S. Hart-Scott-Rodino Antitrust Improvements Act. The transaction has been approved by the Board of Directors of Gibson. As of August 1, 2023, Gibson Energy announce the expiration of the waiting period under the U.S. Hart-Scott-Rodino Antitrust Improvements Act of 1976. The closing of the transaction is expected to occur in the third quarter of 2023. J.P. Morgan Securities Canada acted as financial advisor and Latham and Watkins LLP and Kwang Lim, John E. Piasta and Greg M. Johnson of Bennett Jones LLP as legal advisors to Gibson Energy.
Gibson Energy Inc. (TSX:GEI) completed the acquisition of South Texas Gateway Terminal LLC from Buckeye Partners, L.P. and others on August 1, 2023. The purchase price for the Transaction was funded, in part, from the net proceeds of Gibson Energy's CAD 403 million ($305.022 million) bought deal offering of subscription receipts, which closed on June 22, 2023.
Gibson Energy Inc. is a liquids infrastructure company. The Companyâs principal businesses consist of the storage, optimization, processing, and gathering of liquids and refined products. Its segments include Infrastructure and Marketing. The Infrastructure segment includes a network of liquids infrastructure assets that include oil terminals, rail loading and unloading facilities, gathering pipelines, a crude oil processing facility, and other small terminals. The Marketing segment is involved in the purchasing, selling, storing, and optimizing of hydrocarbon products as part of supplying the Moose Jaw Facility and marketing its refined products, as well as helping to drive volumes through the Companyâs key infrastructure assets. The Marketing segment also engages in optimization opportunities. The Company's operations are located across North America, with core terminal assets in Hardisty and Edmonton, Alberta, Ingleside, Texas, and including a facility in Moose Jaw, Saskatchewan.
GIBSON ENERGY INC. 
