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AL Gulf Coast Terminals, LLC, a majority owned portfolio company of ArcLight Capital Partners, LLC has announced that it has closed a $305 million financing programme supported by the ownership interests in its subsidiary, Houston Fuel Oil Terminal Company, LLC.

ArcLight invested in HFOTCO in 2007 and increased its ownership to 100 percent in October 2009 by purchasing 50 percent of the business from Motiva Enterprises LLC, a joint venture between Shell and Saudi Refining, Inc.

HFOTCO is the largest provider of crude and residual fuel oil storage in the Gulf of Mexico, with 13.3 mm barrels of storage capacity.

The company provides product storage, heating, blending, and transportation services for regional refineries, major integrated oil companies, and trading operations.

"HFOTCO has begun construction on a fourth deep-water ship dock which will ensure HFOTCO’s superior servicing levels to its existing customer base as well as allow the company to execute its plans for additional expansion to accommodate current customer demand," HFOTCO said in a statement.

ArcLight refinanced the existing holding company facility with a $305 million term Loan B facility, rated BBB-/Ba2 by S&P and Moody’s respectively. Barclays Capital was the sole arranger for the financing programme.

"The proceeds from the financing were utilized to repay existing outstanding debt and provide a distribution to the sponsors," ArcLight said.

Commenting on the financing arrangement Dan Revers, Managing Partner at ArcLight said "We are pleased to have closed this financing and are excited to move forward on our future growth plans at HFOTCO. We are well positioned with the existing business and remain committed to future expansions to support our customer demand at this highly strategic asset in the U.S. Gulf Coast.

"HFOTCO’s strong customer base, significant growth prospects and stellar management team make the business an ideal investment for our funds", added Revers.