FTAI Infrastructure's Jefferson Unit to Acquire Crude Oil Logistics Assets for $255M
FIP sits 15% above its 52-week low of $2.765.
Summary
FTAI Infrastructure's Jefferson subsidiary agreed to acquire the Port Arthur Terminal and a 50% stake in a Diluent Recovery Unit from USD Group for about $255 million in cash. The buyer is Drub LLC, an indirect subsidiary, and the seller is DRUbit Holdings LLC. The purchase price is based on a $255 million enterprise value, with $190 million of assumed debt and a $72 million Barclays loan commitment. A $15.3 million termination fee applies if the buyer breaches. The deal is expected to add roughly $50 million in annual EBITDA, more than doubling Jefferson's existing Adjusted EBITDA, with contracted cash flow under a long-term take-or-pay agreement with an investment-grade counterparty. Financing will come from assuming existing debt and a new acquisition facility, and the company may issue additional parity bonds under Jefferson Bond Borrower LLC. Closing is expected in Q4 2026 pending regulatory approvals. This follows the $230 million bridge loan refinancing in July and Q2 revenue of $186.8 million, and it materially expands the company's midstream footprint in the Gulf Coast crude logistics market.
Updated with an SEC 8-K filing · What changed
Updates
· SEC 8-K — The 8-K discloses the buyer is Drub LLC, an indirect subsidiary, and the seller is DRUbit Holdings LLC. The purchase price is based on a $255 million enterprise value, with $190 million of assumed debt and a $72 million Barclays loan commitment. A $15.3 million termination fee applies if the buyer breaches.
At the time of this announcement, FIP was trading at $3.19 on NASDAQ in the Energy & Transportation sector, with a market capitalization of approximately $369.3M. The 52-week trading range was $2.77 to $6.69. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: GlobeNewswire.