Delek Logistics Partners (DKL)

[pete807]

As we expected regarding logistic pieces of ALDW here are the details from The DKL CC:

The drop down of logistics assets from Delek US Big Spring refinery is expected to close in March with an effective date of March 1. These assets consist of storage tanks and terminals. In addition, a new marketing agreement would be entered into between Delek and Delek Logistics for projects for Delek at Big Spring.

The annual expected EBITDA from these assets is approximately $40.2 million. The purchase price is approximately $315 million and will be paid with cash on hand and borrowings on our revolver.

We continue to focus on creating long-term value for our unit holders and believe that the joint venture, proposed Big Spring drop down and growth initiative should continue to support our annual distribution growth per limited partner unit of at least 10% through 2019, while maintaining good distribution coverage.