An affiliate of World Fuel Services, the parent company of Dakota Plains Holdings, Inc.'s, joint venture partner in New Town, N.D., 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 reported by RT&S on March 15, 2013, 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.
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.”