Houlihan Lokey Advises US Development Group

Houlihan Lokey is pleased to announce that US Development Group, LLC (USDG) has agreed to sell its 100% interest in the Port Arthur Terminal (the PAT), located in Port Arthur, Texas, and its 50% interest in the Diluent Recovery Unit (the DRU), located in Hardisty, Alberta, Canada, to a subsidiary of FTAI Infrastructure Inc. (NASDAQ:FIP) for $255 million cash. Houlihan Lokey advised USDG in all aspects of marketing, structuring, and negotiating the transaction.

USDG, a portfolio company of Energy Capital Partners (ECP), is engaged in designing, developing, owning, and managing large-scale multi-modal logistics centers and energy-related midstream infrastructure across North America. The acquired assets represent an integrated origin-to-destination logistics platform for the shipment of crude oil into the Beaumont refinery hub under a long-term, take-or-pay contract with a major energy exploration and production company. The PAT is designed to handle ~50 MBbl/d of crude oil arriving by rail, which is further shipped to customers via an owned 12-mile, 24-inch-diameter pipeline system connecting to P66’s Beaumont terminal for distribution to local refiners in Beaumont, Lake Charles, and other key Gulf Coast markets. USDG is also currently pursuing the development of a premier energy logistics terminal on the Houston Ship Channel with capacity for substantial tank storage, multiple docks (including barge and deepwater), inbound and outbound pipeline connectivity, as well as a rail terminal with unit train capabilities.

ECP, founded in 2005 and based in Summit, New Jersey, is a leading investment platform focused on energy infrastructure. ECP combines deep domain expertise with a value-added, operationally focused investment approach. Since inception, ECP has secured more than $41 billion in capital commitments from institutional investors globally.

FTAI Infrastructure primarily invests in critical infrastructure with high barriers to entry across the rail, ports and terminals, and power and gas sectors that, on a combined basis, generate strong and stable cash flows with the potential for earnings growth and asset appreciation. FTAI Infrastructure is externally managed by an affiliate of Fortress Investment Group LLC, a leading, diversified global investment firm.

Houlihan Lokey acted as the exclusive financial advisor to USDG and ECP for all aspects of this transaction. This deal highlights Houlihan Lokey’s continued market leadership across terminals and energy infrastructure mergers and acquisitions.

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