Westlake to place ethylene assets in limited partnership

摘要

Westlake Chemical has announced plans to carve out its ethylene assets into a tax-advantaged separately traded limited partnership, according to regulatory flings. The company, Westlake Chemical Partners LP, will own two ethylene facilities at Westlake’s Lake Charles, LA site with combined capacity of 2.7 billion lbs/year; one ethylene unit with capacity of 630 million lbs/year at Calvert City, KY; and a 200-mile ethylene pipeline that runs from Mont Belvieu, TX to Westlake's polyethylene units at Longview, TX. The partnership will enter into a 12-year ethylene sales agree- ment, under which Westlake will agree to purchase 95% of the partnership's ethylene production on a cost-plus basis at a fxed margin of 10 cts/lb. Assets included in the partnership had pro forma 2013 revenue of $1.2 billion and pro forma Ebitda of $367.1 million, according to regulatory flings. Westlake shares soared 13% on the news, trading at $72.81/share at 12 pm ET.