McGuireWoods lawyers represented the conflicts committee of Delek Logistics’ general partner in the company’s $61.9 million acquisition of midstream assets from Delek US Holdings Inc.
The assets include a crude oil storage tank at the Delek US refinery in Tyler, Texas, and an offloading facility at the Delek US El Dorado, Arkansas, refinery for crude oil delivered by rail. Delek Logistics financed the purchase through available cash and borrowings on its revolving credit facility.
The El Dorado offloading facility consists of two crude oil unloading racks that allow Delek US’ El Dorado refinery to receive up to 25,000 barrels daily of light crude, up to 12,000 barrels per day of heavy crude, or some combination of the two. The Tyler crude oil storage tank has approximately 350,000 barrels of shell capacity that supports the Delek US Tyler refinery.
The transaction and related agreements were approved by the conflicts committee of Delek Logistics’ general partner, which McGuireWoods represented. The committee is comprised solely of independent directors.
Headquartered in Brentwood, Tennessee, Delek Logistics is a growth-oriented master limited partnership (MLP) formed by Delek US to own, operate, acquire and construct crude oil and refined products logistics and marketing assets.
“Our continued representation of the conflicts committee is important to us and we are happy to assist Delek Logistics with its continued growth,” said Houston-based partner David Ronn, who led the McGuireWoods team. “Our master limited partnership practice continues to grow through wonderful relationships as with Delek Logistics.”
McGuireWoods has a cross-disciplinary team of corporate, energy and tax lawyers who provide industry-leading advice to clients in all aspects of master limited partnership transactions.