Limetree Bay Terminals LLC announced on Monday that it has entered into a financing agreement that will see the St. Croix fuel storage facility receive up to $100 million in new capital.
“Under the terms of the agreement, AMP Capital Investors S.A.R.L. and affiliates will provide Limetree Terminals’ indirect parent company, Limetree Bay Terminals Holdings II, LLC with a $50 million incremental tranche of term loans, which amount can be upsized by an additional $50 million at the election of AMP Capital,” Limetree said in a press release. The proceeds of the term loans will be invested in the company, it said.
“This substantial capital infusion is a clear demonstration of the strategic importance of the Limetree Bay terminal and the vital role this large-scale logistics facility plays in the flow of materials for St. Croix and the region,” said Jeffrey Rinker, Limetree Bay’s CEO. “The transaction significantly enhances the company’s liquidity position allowing us to build on our strategic location and world-class facilities.”
According to Limetree, the facility consists of 167 tanks, with a capacity of approximately 34 million barrels, and deep-water access to 11 docks including an offshore single point mooring buoy capable of loading and discharging vessels up to VLCC size, which is industry parlance for very large shipping vessels up to 1,540 feet in length.
Limetree Terminals is distinct and separate from Limetree Bay Refining LLC, whose operations have been suspended following the filing of voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code on July 12. Limetree Terminals is expected to continue to operate without interruption while Limetree Refinery undergoes its restructuring process, the company said in the press release.
A hearing in Limetree Refinery’s bankruptcy case was set for Monday afternoon in U.S. Bankruptcy Court for the Southern District of Texas.
Huntons Andrews Kurth, LLP is serving as legal counsel to Limetree Terminals and Evercore is serving as the company’s financial advisor. Vinson & Elkins, LLP is serving as legal counsel to AMP Capital and Davis Polk & Wardwell LLP is serving as legal counsel to a group of the company’s term loan lenders.