Delek Logistics Partners LP acquired, from a subsidiary of Delek US Holdings Inc., substantially all storage tanks and the sole refined products terminal at Delek US’ Tyler, Texas, refinery for $94.8 million in cash. These assets are expected to contribute at least $10.5 million of EBITDA annually.

The tank farm has approximately 2 million barrels (bbl.) of aggregate shell capacity and consists of 96 tanks and related assets, including piping. The product terminal operated at an approximate total throughput of 55,000 bbl. per day in 2012 and has an estimated capacity of 72,000 bbl. per day

“This transaction is expected to increase the annual EBITDA forecast provided in Delek Logistics’ initial public offering prospectus by approximately 21%, creating a significant level of growth without issuing equity. This step supports Delek Logistics’ ability to grow its cash distribution and its management currently expects to recommend to the board of directors of its general partner an increase in the quarterly distribution to at least $0.405 per unit for the period ending September 30,” Uzi Yemin, chairman and chief executive of Delek Logistics’general partner and Delek US, said in a release.

“Delek Logistics also recently increased its revolving credit facility to $400 million from $175 million. This provides financial flexibility for third-party acquisitions, as well as further asset drop downs, which will unlock additional logistics value for Delek US over the next 18 months.”

Delek Logistics financed the purchase price of $94.8 million for these assets through a combination of cash on-hand and new borrowings on its revolving credit facility.

In connection with the closing of the transaction, Delek US and Delek Logistics entered into, among other agreements, a throughput and tankage agreement for the terminal assets, storage tanks and related assets. This agreement includes minimum throughput commitments, an annual storage fee, annual inflation based price escalations and an eight-year initial contract term.