Home / Knowledge / News / Textiles / Westlake Partners acquires more stake in Westlake OpCo
Westlake Partners acquires more stake in Westlake OpCo
30
Apr '15
NYSE listed Westlake Partners LP said it has acquired 2.7 per cent of additional limited partner interest in Westlake Chemical OpCo LP for approximately $135 million.

“The transaction is expected to be immediately accretive to Westlake Partners' distributable cash flow,” Westlake Chemical Partners said in a press release.

Additionally, Westlake Partners has established a $300 million revolving credit facility (MLP) with a wholly owned subsidiary of Westlake Chemical Corporation to fund acquisitions and for general purposes.

This transaction increases Westlake Partners limited partner interest in Westlake OpCo from approximately 10.6 per cent to around 13.3 per cent.

This also represents the first purchase of additional interests in Westlak OpCo by Westlake Partners following its initial public offering in August 2014.

Westlake OpCo's assets are comprised of three ethylene production facilities, which primarily convert ethane into ethylene and have an aggregate annual capacity of approximately 3.4 billion pounds.

Westlake OpCo sells around 95 per cent of its ethylene production to Westlake Partners under a long-term supply agreement, which provides for a stable $0.10 margin per pound.

Westlake Partners also added that the MLP Revolver entered into will support Westlake Partners ability to pursue additional acquisitions.

The MLP Revolver is a three-year, $300 million revolving credit facility with LIBOR-based interest rates.

"This transaction is the first step to achieve our stated annualised low double-digit growth in distributions,” Westlake Partners CEO, Albert Chao said.

“In conjunction with this transaction, we intend to provide consistent, quarterly increases in distributions targeting annual distribution growth in the low double-digit percentage range," he added.

According to Chao, acquiring additional interest in OpCo provides a high-quality, stable and a fee-based earnings stream and represents just one of a number of levers it can use to grow its distributions over time.

Westlake Partners also hopes to pursue organic growth opportunities such as capacity expansions in OpCo's ethylene production facilities and acquisitions of other qualified assets from third parties.

It is currently executing its previously announced capacity expansion project at one of OpCo's ethylene crackers in Lake Charles, Louisiana.

This expansion is expected to increase OpCo's ethylene production capacity by approximately 250 million pounds once completed during the first half of 2016. (AR)

Fibre2fashion News Desk - India


Must ReadView All

US & EU retailers release industry approach to GDPR

Apparel/Garments | On 24th May 2018

US & EU retailers release industry approach to GDPR

The Washington, D.C.-based National Retail Federation and...

Global cotton consumption to reach record in 2018-19: USDA

Textiles | On 24th May 2018

Global cotton consumption to reach record in 2018-19: USDA

Reflecting continued growth in the global economy, world cotton mill...

Courtesy: Nanollose

Textiles | On 24th May 2018

Nanollose develops fabric from coconuts

Australian technology company Nanollose has developed a sustainable...

Interviews View All

Amardeep Singh
Orient Craft

'In export markets, the trend in terms of embroidery, is towards matte...

Dinaz Madhukar
DLF Emporio and DLF Promenade

‘Each event and promotion is planned out keeping in mind the business of...

Poojaa Kumar Deepak
Zeven

Zeven's performance sports apparel is designed for the Indian body type,...

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Tejas N Patel, Navin D Patel

Founded in 1999 by Navin Patel in the name of Tejas Fabrics with 100...

Mala Alwani

<div>Delhi-based fast fashion womenswear brand, Besiva, aims to bridge the ...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Samar Firdos
Arvind Ltd

<b>Samar Firdos</b>, Chief Manager (Design) at Lifestyle Apparel Denim...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


May 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search