HOUSTON, September 27, 2013: Porter Hedges represented Par Petroleum Corporation (“Par Petroleum”) in the acquisition by its subsidiary Hawaii Pacific Energy, LLC (“HPE”) of Tesoro Hawaii, LLC (“Tesoro Hawaii”) from Tesoro Corporation. The transaction included:
- Purchase price of $75 million plus estimated net working capital and a contingent earn-out
- $200 million common stock issuance priced at $1.39 per share
- Credit facility arranged to fund working capital
The acquired assets include: a 94,000 barrel per day-capacity refinery; storage capacity for 2.4 million barrels of crude oil and 2.5 million barrels of refined products; and related logistics assets, including five refined product terminals, 27 miles of pipelines and a single point mooring terminal. In addition, HPE has rights to sell gasoline through a network of 31 Tesoro-branded retail stations in Hawaii. Tesoro Hawaii, which will be renamed Hawaii Independent Energy, LLC (“HIE”), will be headquartered in Oahu, Hawaii.
The refinery produces gasoline, jet fuel, high sulfur diesel, low sulfur fuel oil and high sulfur fuel oil. It is also a leading supplier of ultra-low sulfur diesel to the Hawaiian Islands and has a Nelson complexity rating of 5.7x. Major process units include crude distillation, vacuum distillation, hydrocracking, naphtha hydrotreating, reforming and visbreaking. The refinery is located in the Campbell Industrial Park in Kapolei, approximately 20 miles west of Honolulu.
Par Petroleum is a Houston-based company that manages and maintains interests in a wide variety of energy-related assets. Par’s largest oil and gas asset is an investment in Piceance Energy, LLC, which owns and operates natural gas reserves located in the Piceance Basin, Colorado. In addition, Par’s operating activities are concentrated in its wholly-owned subsidiaries, Texadian Energy and HIE.
Porter Hedges previously represented Par Petroleum in the acquisition of Tesoro Hawaii, LLC and acquisition of SEACOR Energy, Inc. in January 2013.
The Porter Hedges team was led by Corporate Partners James Cowen and Matt Vaughn and Finance Partners Joyce Soliman and Jason Lloyd with assistance from Kevan Richards, Geoff Schultz, Kevin Poli, Beverly Young, Adam Nalley, Clayton Huff, Maria Hadjialexiou, Mac Marshall, Anders Gibson and Jessica Gonzalez.
For additional information, see the Par Petroleum press release here.