ArcLight acquires terminals, nears fundraising target 0

The Boston-based buyout firm has purchased Pyramid LLC through affiliates of its sixth fund, which as of last month had raised $3.07bn out of its $4bn target.

ArcLight Capital Partners, a private equity firm focusing on energy infrastructure, has acquired Pyramid LLC, formerly known as Petroleum Products Corporation (PPC), through its portfolio company Penn Products Terminals.

According to a statement issued by the Boston-based firm, Pyramid owns and operates a network of 12 high-quality refined products storage terminal facilities in Pennsylvania totalling approximately 9 million barrels of storage capacity. The terminals are pipeline, barge and rail-connected and supplied from a geographically diverse set of refined product sources including New York, Philadelphia, the Midwest and Gulf Coast.

ArcLight did not disclose information regarding Penn Products Terminals, which it described as newly-formed. A spokesperson for the firm declined to comment further on ArcLight’s new portfolio company.

Moody’s, which on March 31 affirmed a Ba2 senior secured rating on Penn Products Terminals LLC (PPT) following a debt upsizing, said at the time that ArcLight Capital Partners was in the process of acquiring PPT through affiliates of ArcLight Energy Partners Fund VI, the sixth fund ArcLight began raising last August. According to Infrastructure Investor’s Research & Analytics, the fund has a $4 billion target and a $5 billion hard-cap. As of March 2015, the fund had raised $3.07 billion, according to a filing with the Securities & Exchange Commission (SEC).

Founded in 1924, Penn Products Terminals LLC primarily stores gasoline, diesel fuel, heating oil and other refined products. According to Moody’s, PPT owns and operates a network of 12 refined products storage terminals in Pennsylvania with over 9 million barrels of storage capacity; a profile similar to that of Pyramid.

Founded in 2001, ArcLight Capital has invested over $12.7 billion in more than 90 power, midstream and production assets. In addition to its Boston headquarters, the firm also has an office in Luxembourg.