PBF Logistics LP, including wholly-owned subsidiaries, announced today that it has entered into multiple agreements delivering accretive growth to the Partnership. PBF Logistics acquired, effective today, the third-party Cummins Terminal, located in Knoxville, TN. Additionally, the Partnership has reached an agreement to acquire several development assets from subsidiaries of PBF Energy Inc. (NYSE: PBF, "PBF Energy"), its sponsor. The execution of definitive agreements for, and the closing of, the assets to be acquired from PBF Energy are expected in the second quarter.
In association with the assets acquired from PBF Energy, the Partnership has identified organic growth investment projects that will generate incremental revenue for PBFX while providing new opportunities for PBF Energy to maximize the potential of presently under-utilized assets. Upon completion of the organic project investments, run-rate annualized earnings before interest, taxes, depreciation and amortization ("EBITDA") is expected to be approximately $18.1 million, which will be supported by long-term agreements with PBF Energy. The total consideration of $125.4 million, including acquisitions and investments, is expected to be financed through a combination of cash on hand, borrowings under the Partnership's revolving credit facility and equity issued to PBF Energy. Pro forma leverage is expected to remain below 3.7x.
PBFX Executive Vice President Matt Lucey said, "These acquisitions and projects represent the first step towards executing the multi-year growth plan announced earlier this year. This is a unique blend of opportunities as PBF Logistics has executed on all three of its avenues for growth – third party acquisitions, organic projects and drop-downs. By leveraging our relationship with our sponsor, the Partnership is capitalizing on opportunities at four of PBF Energy's five refineries and has expanded the Partnership's geographic presence." Mr. Lucey continued, "In a challenging environment, PBF Logistics has successfully grown the Partnership at an attractive multiple utilizing our balance sheet and with the support of our sponsor. We are excited about the transactions and look forward to welcoming all of the assets, especially the Cummins Terminal employees and customers, to the PBF Logistics family."
The Cummins Terminal assets include East and West terminals consisting of two truck loading facilities with nine loading bays. The terminals receive clean products through connections with Colonial and Plantation pipelines and have tankage of approximately 520,000 barrels. The acquisition of the Cummins Terminal is expected to allow PBF Logistics to leverage its growing footprint and capitalize on commercial opportunities with new customers as well as expand opportunities with PBF Energy. The assets to be acquired from PBF Energy include: the Toledo Rail Products Facility which will be upgraded to facilitate clean product distribution and exports; the Chalmette Truck Rack dedicated to loading gasoline and distillate, as well as, delivering ethanol for blending; and the Paulsboro Lube Oil Terminal which will be expanded with additional tankage and infrastructure. Additionally, the Partnership will be investing in two independent growth projects related to LPG rail-unloading at the Chalmette refinery and ethanol loading infrastructure at the Delaware City refinery marine terminal.
About PBF Logistics LP
PBF Logistics LP (NYSE: PBFX), headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy Inc. to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
