Dakota Plains Announces Funding For Pioneer Terminal Expansion
New Credit Facility Provides Project Financing
$31 Million Of Joint Venture Restricted Cash Will Be Used To Fully Fund
Pioneer Terminal Expansion
WAYZATA, Minn., June 17, 2013
WAYZATA, Minn., June 17, 2013 /PRNewswire/ --Dakota Plains Holdings, Inc.
("Dakota Plains" and "DAKP"), (OTC: DAKP) today announced the execution of a
new credit facility. An affiliate of World Fuel Services, the parent company
of Dakota Plains' joint venture partner in New Town, North Dakota, is
providing a term loan with up to $20 million in available funds that will
finance a portion of Dakota Plains' share of the Pioneer Terminal expansion
project. As previously announced, the Pioneer Terminal expansion project
provides a double loop track that will accommodate up to 120 tank car unit
trains and will increase the throughput capacity from 30,000 barrels per day
to up to 80,000 barrels per day. The joint venture partners also agreed to
use $31 million of restricted cash in the joint ventures for the purposes of
funding the project. As a result, Dakota Plains' $25 million share of the
Pioneer Terminal expansion project is now fully funded.
The term loan facility is reserved for the Pioneer Terminal expansion project
and has a drawdown capacity of up to $20 million with a maturity date of
December 31, 2026. Interest under the term loan is based on the level of
borrowings and ranges from 6.0% to 12.0%. Based on Dakota Plains' 50% share
of the expected $50 million gross project cost, Dakota Plains anticipates that
its total drawdown will not exceed $10 million. Pursuant to the term loan,
the interest rate for this level of drawdown is 9.0%.
Chairman and Chief Executive Officer, Craig McKenzie, said, "With the new
credit facility and cash release from the joint ventures, we improve our
balance sheet strength and fully fund our growth at Pioneer. The Pioneer
Terminal expansion project remains on schedule and on budget for a year-end
start-up despite the inclimate weather conditions we continue to face."
About Dakota Plains Holdings, Inc.
Dakota Plains is an integrated midstream energy company, which competes
through its 50/50 joint ventures to provide customers with crude oil offtake
services that include marketing, transloading and trucking of crude oil and
related products. Direct and indirect company assets include a proprietary
trucking fleet, approximately 1100 railroad tank cars, and the Pioneer
Crude-By-Rail Terminal transloading facility centrally located in Mountrail
County, North Dakota, for Bakken and Three Forks related E&P activity. For
more corporate information please visit: www.dakotaplains.com.
Cautionary Note Regarding Forward Looking Statements
This announcement contains forward-looking statements that reflect the current
views of Dakota Plains, including, but not limited to, statements regarding
our future growth and plans for our business and operations. We do not
undertake to update our forward-looking statements. These statements involve
risks and uncertainties. Our actual results could differ materially from
those anticipated in these forward-looking statements as a result of lack of
diversification, dependency upon strategic relationships, dependency on a
limited number of major customers, competition for the loading, marketing and
transporting of crude oil and related products, difficulty in obtaining
additional capital that will be needed to implement business plans,
difficulties in attracting and retaining talented personnel, risks associated
with building and operating a transloading facility, changes in commodity
prices and the demand for crude oil and natural gas, competition from other
energy sources, inability to obtain necessary facilities, difficulty in
obtaining crude oil to transport, increases in our operating expenses, an
economic downturn or change in government policy that negatively impacts
demand for our services, penalties we may incur, costs imposed by
environmental laws and regulations, inability to obtain or maintain necessary
licenses, challenges to our properties, technological unavailability or
obsolescence, and future acts of terrorism or war, as well as the threat of
war and other factors described from time to time in the company's reports
filed with the U.S. Securities and Exchange Commission, including our annual
report on Form 10-K, filed March 14, 2013, as may be amended and supplemented
by subsequent reports from time to time.
For more information, please contact:
Company Contact Investor Contact
Tim Brady, CFO Peter Seltzberg, Hayden IR
Phone: 952.473.9950 Phone: 646.415.8972
SOURCE Dakota Plains Holdings, Inc.
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