Delek Logistics Partners LP and Delek US Holdings Inc. have announced that Delek Logistics has acquired, from a subsidiary of Delek US, certain storage tanks and the product terminal at Delek US’s Tyler, Texas refinery for $94.8 million in cash.

“This is Delek US’s first drop down to Delek Logistics and demonstrates a commitment to grow Delek Logistics and unlock the value of these assets,” said Uzi Yemin, chairman and CEO of Delek Logistics’ general partner and Delek US.

“This transaction is expected to increase the annual EBITDA forecast provided in Delek Logistics’ IPO prospectus by approximately 21%, creating a significant level of growth without issuing equity.

This step supports Delek Logistics’ ability to grow its cash distribution and its management currently expects to recommend to the Board of Directors of its general partner an increase in the quarterly distribution to at least $0.405 per unit for the period ending Sept. 30, 2013.

Delek Logistics also recently increased its revolving credit facility to $400 million from $175 million.

This provides financial flexibility for third party acquisitions as well as further asset drop downs, which will unlock additional logistics value for Delek US over the next 18 months.”

Assets acquired by Delek Logistics as part of this transaction include substantially all of the storage tanks and the sole refined products terminal at the Tyler refinery. These assets are expected to contribute at least $10.5 million of EBITDA (earnings before interest, taxes, depreciation and amortization) annually.

The tank farm has approximately two million barrels of aggregate shell capacity and consists of 96 tanks and related assets, including piping.

The product terminal operated at an approximate total throughput of 55,000 barrels per day in 2012 and has an estimated capacity of 72,000 barrels per day.

These assets are located adjacent to Delek US’s Tyler, Texas refinery and will continue to support that operation in the future. The transaction was approved by the Conflicts Committee of Delek Logistics’ general partner, which is comprised solely of independent outside directors.

Delek Logistics financed the purchase price of $94.8 million for these assets through a combination of cash on-hand and new borrowings on its revolving credit facility.

In connection with the closing of the transaction, Delek US and Delek Logistics entered into, among other agreements, a throughput and tankage agreement for the terminal assets, storage tanks and related assets.

This agreement includes minimum throughput commitments, an annual storage fee, annual inflation based price escalations and an eight year initial contract term.