HOUSTON (AP) — Plains All American Pipeline L.P. said Thursday that it has completed the acquisition of refinery and pipeline assets from Western Refining Inc. for about $220 million.
The Houston oil pipeline and storage company acquired essentially all of Western Refining's Yorktown, Va., assets, including a terminal, an idled refinery and an 82-mile segment of a 424-mile crude oil pipeline in New Mexico.
Western Refining will retain its East Coast wholesale business and continue to market products in the Mid-Atlantic region, the company said in a statement.
The El Paso, Texas, company sold the assets as part of an effort to slash debt and bolster its balance sheet.
It expects to record a non-cash loss between $440 million to $460 million in the fourth quarter to reflect the sale of the assets.
Meanwhile, Western Refining said it recently completed the redemption of its outstanding $275 million senior secured floating rate notes due 2014. The notes were redeemed for $288.75 million, including a 5 percent premium, plus accrued and unpaid interest.
Shares of Western Refining ended the regular trading session up 19 cents at $13.20 on Thursday.
Plains All American's company units added 69 cents to $72.99.
