Western Refining Makes Offer to Acquire All Publicly-Traded Units of Northern Tier Energy LP

abarrelfullabarrelfull wrote on 28 Oct 2015 06:48
Tags: n-america refinery usa western-refining


Western Refining, Inc. (NYSE:WNR) today announced that it has submitted a proposal to the Conflicts Committee of the Board of Directors of the general partner of Northern Tier Energy LP (NYSE:NTI) to acquire all of NTI’s outstanding publicly-held common units.

The proposed purchase price for each NTI common unit is comprised of $17.50 in cash and 0.2266 of a share of Western common stock. The proposed consideration represents a 15% premium to the 20-day volume weighted average price (“VWAP”) of NTI’s common unit price as of October 23, 2015, and represents aggregate consideration of $27.62 per NTI common unit based on the 20-day VWAPs for NTI and Western as of October 23, 2015. Assuming completion of the proposed transaction, NTI will become a wholly-owned subsidiary of Western and NTI common units will cease to be publicly traded. NTI’s 7.125% Senior Secured Notes due 2020 will remain outstanding.

Jeff Stevens, President and CEO of Western said, “We believe this proposed transaction enhances value for both the Western shareholders and NTI unitholders. The combination of Western and Northern Tier will simplify our corporate structure and create a stronger, more diverse company with enhanced growth opportunities and greater access to capital.”

The proposed transaction is subject to the negotiation and execution of mutually acceptable definitive documentation and approval by Western’s Board of Directors, NTI’s Conflicts Committee and the common unitholders of NTI.

Western owns 100% of the general partner of NTI and owns approximately 38% of the outstanding common units of NTI.

Northern Tier Energy is the owner of Saint Paul Park Refinery


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