AL Gulf Coast Terminals, LLC, a majority owned portfolio company of ArcLight Capital Partners LLC, has closed a $305 million financing supported by the ownership interests in its subsidiary, Houston Fuel Oil Terminal Company LLC (HFOTCO). ArcLight invested in HFOTCO in 2007 and increased its ownership to 100% in October 2009 by purchasing 50% of the business from Motiva Enterprises LLC, a joint venture between Shell and Saudi Refining Inc.
HFOTCO is the largest provider of crude and residual fuel oil storage in the Gulf of Mexico, with 13.3 mm barrels of storage capacity. The company provides product storage, heating, blending, and transportation services for regional refineries, major integrated oil companies, and trading operations. HFOTCO has begun construction on a fourth deepwater ship dock that will ensure its servicing levels to existing customers and allow the company to execute its plans for additional expansion.
ArcLight refinanced the holding company facility with a $305 million term Loan B facility rated BBB-/Ba2 by S&P and Moody's, respectively. Barclays Capital was the sole arranger for financing. Proceeds from the financing were used to repay outstanding debt and provide a distribution to sponsors.