Royal Vopak, which is based in the Netherlands, owns the remaining 20% in BORCO.
Buckeye expects to finance the purchase through a combination of equity and debt.
Buckeye has obtained a commitment from Barclays Bank, SunTrust Robinson Humphrey, and SunTrust Bank for a senior unsecured bridge facility of up to $775m to provide the remainder of the proceeds necessary to finance the BORCO acquisition.
Buckeye plans to raise cash through the issuance of term debt prior to closing the acquisition rather than use the bridge facility.
Buckeye expects to complete the transaction during the first quarter of 2011.
Vopak has the right to sell its 20% ownership interest in BORCO to Buckeye at the same proportionate price and on the same terms and conditions as those in the agreement with First Reserve.
BORCO has total installed storage capacity of 21.6 million barrels and is prepared to undertake a significant expansion project, which Buckeye expects will be phased in over the next two to three years.
Barclays Capital acted as sole financial advisor and sole placement agent to Buckeye in connection with the acquisition and the private placement of equity.
