Continuing its strategy of streamlining its business profile, the partnership has agreed to selling its marine products terminalling business to institutional investors advised by J P Morgan Asset Management.
The divestments include the Harvey and Westwego terminals in the Port of New Orleans and the Brunswick terminal in the Port of Brunswick, Georgia.
The proceeds of the sale, which is expected to close in Q3 2018, will be used to reduce indebtedness under American Midstream Partners’ revolving credit facility, as well as general corporate purposes.
In February, the partnership announced the $138.5 million sale of its refined products terminalling business to DKGP Energy Terminals LLC, a joint venture between Delek Logistics Partners, LP and Green Plains Partners LP. It also flagged up its intention to find buyers for its marine and speciality chemical storage facilities.
At the time, Lynn Bourdon III, President and Chief Executive Officer, commented: ‘This transaction demonstrates AMID's continued execution on its capital optimisation strategy of simplifying its business and redeploying capital from non-core assets toward complementary and strategic opportunities.’