Martin Midstream Closes Acquisition Of Specialty Naphthenic Lubricant Processing Assets

11/30/2009 5:03 PM ET

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(RTTNews) - Martin Midstream Partners L.P. (MMLP: News ) announced that on November 25, it closed the acquisition of specialty naphthenic lubricant processing assets from Cross Oil Refining & Marketing Inc., a subsidiary of Martin Resource Management Corp., the owner of Martin Midstream Partners's general partner.

In exchange for the assets, Martin Midstream Partners issued 804,721 common units and 889,444 subordinated units at a price of $27.96 and $25.16 per limited partner unit, respectively. This represents total consideration paid for the assets of $45.0 million.

In connection with the transaction, Martin Midstream GP LLC, the general partner of Martin Midstream Partners, made a capital contribution of $0.9 million to Martin Midstream Partners in order to maintain its 2% general partner interest in it.

Martin Midstream Partners announced the closing of the previously announced investment of $20.0 million in cash by Martin Resource Management Corp. Martin Midstream Partners issued 714,285 common units in exchange for the investment at a price of $28.00 per common unit. In connection with the investment, Martin Midstream GP LLC made a capital contribution to Martin Midstream Partners of $0.4 million in order to maintain its 2% general partner interest in it.

Proceeds from the Investment and the Martin Midstream GP capital contributions totaling $21.3 million were used to repay a portion of indebtedness under Martin Midstream Partners's credit facility.