© 2017 The Texas Lawbook.
By Natalie Posgate
(June 6) – Tulsa-based SemGroup Corp. said Tuesday that it has agreed to purchase Houston Fuel Oil Terminal Company, one of the largest oil terminals in the U.S., from investment funds managed by Alinda Capital Partners for an amount worth roughly $2.1 billion.
Under the agreement, SemGroup will pay Alinda an initial $1.5 billion in cash, which includes $785 million of existing HFOTCO debt, as well as $300 to $400 million in SemGoup stock. SemGroup will fork over a second cash payment of $600 million by the end of 2018 for EBITDA growth purposes.
SemGroup turned to a primarily Houston- and Dallas-based group from Vinson & Elkins to lead its end of the deal. Corporate partners David Oelman and Lande Spottswood led the deal team. They received assistance from corporate associates Matt Falcone, Connor Long and Key Hemyari. Attorneys advising on other aspects were tax partners Ryan Carney and Jim Meyer and associate Lauren Meyers; finance partner Mark Brazzil; executive compensation/benefits partner Shane Tucker and associate Steven Oyler; labor/employment partner Tom Wilson and associate Grace Ho; environmental associate Matt Dobbins; and real estate partner Russell Oshman. Partners from the firm’s Washington, D.C. office were involved in labor & employment and antitrust matters.
Alinda turned to a group from Simpson Thacher & Bartlett that included Houston corporate partner Chris May to lead its end of the transaction.
SemGroup also hired New York attorneys from Gibson, Dunn & Crutcher to advise on finance matters.
The transaction, which is expected to close in the third quarter of this year, establishes SemGroup’s position in the Houston Ship Channel.
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