USDP - USD Partners buys Hardisty South terminal assets eliminates IDRs

USD Partners (NYSE:USDP) agrees to acquire entities owning the Hardisty South terminal assets from USD Group, exchange the sponsor's economic general partner interest in the partnership for a non-economic GP interest, and eliminate the sponsor's incentive distribution rights in the partnership for $75M in cash and ~5.75M common units. USD Partners expects the deal will provide double-digit accretion to the partnership's distributable cash flow per unit in 2023, improving the potential for distribution per unit growth. The company says elimination of IDRs and economic GP interest will simplify the partnership's financial structure and better aligns the interests of its unitholders with the sponsor, who will continue to own a substantial number of common units post-transaction. USD Partners put distributions back into growth mode during 2021 and have forecast this to continue throughout 2022, Daniel Thurecht writes in a bullish analysis posted recently on Seeking Alpha.

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USD Partners buys Hardisty South terminal assets, eliminates IDRs