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SAN ANTONIO, Sept. 23, 2015 /PRNewswire/ — Valero Energy Partners LP (NYSE: VLP, the Partnership) today announced that the board of directors of its general partner has approved the Partnership’s acquisition of the Corpus Christi Terminal Services Business from a subsidiary of Valero Energy Corporation (NYSE: VLO, Valero) for total consideration of $465 million.  The transaction is expected to close effective October 1, 2015.

The business to be acquired includes two terminals that support Valero’s Corpus Christi East and West refineries.  The assets consist of 134 tanks with 10.1 million barrels of storage capacity for crude oil, intermediates, and refined petroleum products.

The Partnership expects to finance the acquisition with $395 million in borrowings under a subordinated loan agreement with Valero, as well as the issuance of additional common units and general partner units to Valero subsidiaries, valued collectively at approximately $70 million.  The newly issued units will be allocated in a proportion allowing the general partner to maintain its 2 percent general partner interest.

Upon closing, the Partnership plans to enter into a 10-year terminaling agreement with a subsidiary of Valero.  The business to be acquired is expected to contribute approximately $50 million of EBITDA in its first full year of operation.

“With transactions totaling $1.14 billion, we’ve exceeded our $1 billion target for acquisitions in 2015,” said Joe Gorder, Chief Executive Officer of VLP’s general partner.  “We’re on course to deliver year-over-year distribution growth in excess of 25 percent.”

The terms of the transaction were approved, subject to the execution of definitive documentation, by the board of directors of the general partner, following the approval and recommendation of the board’s conflicts committee.  The conflicts committee is composed of independent directors and was advised by Evercore Group L.L.C., its financial advisor, and Akin Gump Straus Hauer & Feld LLP, its legal counsel.