Tesoro Logistics Spends $650 Million To Wrap Up Los Angeles Midstream Assets

Abstract

Tesoro Logistics LP entered into a definitive agreement on November 18 to buy the majority of the remaining Los Angeles logistics assets owned by Tesoro Corp's subsidiary, Tesoro Refining & Marketing Company LLC for $650 million. TLLP, based in San Antonio, TX, said November 19 that it will offer 6.3 million common shares to help pay for the transaction. Tesoro Corp spun off Tesoro Logistics in April 2011 and holds a 40% stake in the partnership, including a 2% interest in the general partner. The assets include two marine terminals with expected throughput of 285,000 barrels per day, which includes a marine terminal capable of handling a two million barrel capacity very large crude carrier.