January 16, 2014 [Kansas City Business Journal] - Leawood-based CorEnergy Infrastructure Trust Inc. announced plans to acquire a petroleum products terminal in Portland, Ore., for $40 million, paid for with proceeds from a sale of 6.5 million shares.
The Portland Terminal Facility is a rail and marine facility adjacent to the Willamette River in Portland, with 84 tanks that can store up to 1,466,000 barrels of heavy and refined petroleum products. The terminal is expected to be leased for 15 years to a Arc Logistics Partners LP subsidiary. CorEnergy said it intends to invest an additional $10 million in improvement projects at the terminal.
“This transaction is supportive of our commitment to provide shareholders with long term distribution growth,” CorEnergy CEO David Schulte said in a release. “Our board of directors has already confirmed its intent to increase the quarterly distribution from $0.125 to $0.13 upon completion of this transaction.”
To fund the acquisition of the Portland terminal, CorEnergy said it intends to sell 6.5 million shares of common stock in an underwritten public offering. The underwriters have a 30-day option to purchase up to an additional 975,000 shares of stock.
Bank Of America Merill Lynchwill serve as the sole book running manager for the offering.
Formerly known as Tortoise Capital Resources Corp., CorEnergy Infrastructure is a publicly traded infrastructure asset financing company that focuses on pipeline, storage and power transmission operations. The fund operates as a real estate investment trust.
