CorEnergy Infrastructure Trust, Inc., a Leawood, Kan.-based energy infrastructure company, has agreed to acquire a petroleum products terminal facility in Portland, Ore., for $40 million cash at the end of January. The company will use the net proceeds from the planned sale of 6.5 million shares of its common stock to pay for the acquisition.
“This transaction is supportive of our commitment to provide shareholders with long-term distribution growth,” David Schulte, CorEnergy’s CEO, said in a release. “Our Board of Directors has already confirmed its intent to increase the quarterly distribution from $0.125 to $0.130 upon completion of the transaction.”
After CorEnergy has completed the acquisition it will probably spend $10 million upgrading the facility. The Portland Terminal Facility is a rail and marine facility that is capable of receiving, storing and delivering heavy and refined petroleum products in its 84 tanks, the equivalent of almost 1.5 million barrels, according to a release. CorEnergy is expecting to lease to Arc Logistics Partners LP, which is based in Delaware.