HollyFrontier will be paid in promissory notes with an aggregate original principal amount of $150m and about 3.8 million Holly Energy common units valued at $190m.
Both the firms are expecting to enter into 15-year throughput agreements containing minimum annual revenue commitments from HollyFrontier.
The assets to be acquired will include about 3.7 million barrels of hydrocarbon storage tanks, one refined products truck loading rack, one propane truck loading rack and related refined product pipeline connections at the El Dorado refinery in Kansas.
Holly Energy will also acquire about eight million barrels of hydrocarbon storage tanks, one refined products truck loading rack, two propane loading spots, three crude oil LACTs and a crude receiving pipeline located at Cheyenne refinery in Wyoming.
