Arc Logistics Partners

10.30.17

Arc Logistics Partners LP Announces Mailing of Proxy Statement

NEW YORK, Oct. 30, 2017 (GLOBE NEWSWIRE) – Arc Logistics Partners LP (NYSE:ARCX) (“Arc Logistics” or the “Partnership”) today announced that it has filed a definitive proxy statement with the Securities and Exchange Commission (the “SEC”) for the special meeting of its common unitholders to consider and vote on a proposal to approve the previously announced Purchase Agreement and Plan of Merger (the “Merger Agreement”), dated as of August 29, 2017, by and among Arc Logistics, Arc Logistics GP LLC (“Arc GP”), Lightfoot Capital Partners GP LLC (“LCP GP”), Lightfoot Capital Partners, LP (“LCP LP” and, together with LCP GP, “Lightfoot”) and Zenith Energy U.S., L.P. and certain of its affiliates (together with such affiliates, “Zenith”), a portfolio company of Warburg Pincus, and the merger contemplated thereby.

The special meeting will be held on December 18, 2017 at 11:00 a.m. Eastern time at 666 Fifth Avenue, 26th Floor, New York, New York 10103. Arc Logistics expects to commence mailing the definitive proxy statement and other related proxy materials on or about October 30, 2017 to Arc Logistics common unitholders of record as of October 20, 2017. Only Arc Logistics common unitholders of record at the close of business on October 20, 2017 will be entitled to vote at the special meeting. The deadline for Arc Logistics common unitholders to submit their proxy is 11:59 p.m. Eastern time on December 17, 2017.

Pursuant to the Merger Agreement, Zenith will acquire Arc GP, the general partner of Arc Logistics (the “GP Transfer”), and all of the outstanding common units in Arc Logistics (the “Merger” and, together with the GP Transfer, the “Proposed Transaction”). Under the terms of the Merger Agreement, all Arc Logistics common unitholders, other than Lightfoot, will receive $16.50 per common unit in cash for each common unit they own, which represents a premium of approximately 15% to the Partnership’s common unit price as of August 28, 2017 (which is the day prior to the announcement of the Merger). LCP LP will receive $14.50 per common unit in cash for the approximately 5.2 million common units held by it, and LCP GP will receive $94.5 million for 100% of the membership interests in Arc GP.

Arc Logistics common unitholders who have questions about the proxy statement or voting their common units should contact MacKenzie Partners, Inc., the Partnership’s proxy solicitor, toll free at 1-800-322-2885.

Subject to satisfaction of the remaining closing conditions, including approval by holders of a majority of the outstanding common units of Arc Logistics, the parties currently expect to close the Proposed Transaction on or about December 21, 2017. Lightfoot, the owner of Arc GP and approximately 26.8% of the outstanding common units, has executed an agreement to vote in support of the proposal at the special meeting. Additionally, the transaction is subject to (i) the closing of the purchase by Zenith and Lightfoot from EFS Midstream Holdings LLC of certain of the interests in Arc Terminals Joliet Holdings LLC, which indirectly owns among other things a crude oil unloading facility and a 4-mile crude oil pipeline in Joliet, Illinois, and (ii) the closing of the purchase by Zenith of a 5.5% interest (and, subject to certain conditions, an additional 4.2% interest) in Gulf LNG Holdings Group, LLC, which owns a liquefied natural gas regasification and storage facility in Pascagoula, Mississippi, from Lightfoot.

About Arc Logistics Partners LP

Arc Logistics is a fee-based, growth-oriented limited partnership that owns, operates, develops and acquires a diversified portfolio of complementary energy logistics assets. Arc Logistics is principally engaged in the terminalling, storage, throughput and transloading of petroleum products and other liquids. For more information, please visit www.arcxlp.com.

Additional Information for Unitholders

This communication may be deemed to be solicitation material in respect of the Proposed Transaction. Arc Logistics has filed with the SEC and will furnish to Arc Logistics’ unitholders a proxy statement and other relevant documents. BEFORE MAKING ANY VOTING DECISION, ARC LOGISTICS’ UNITHOLDERS ARE URGED TO READ THE PROXY STATEMENT AND ANY OTHER DOCUMENTS TO BE FILED WITH THE SEC IN CONNECTION WITH THE PROPOSED TRANSACTION OR INCORPORATED BY REFERENCE IN THE PROXY STATEMENT BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION.

Investors and unitholders will be able to obtain, free of charge, a copy of the proxy statement and other relevant documents filed with the SEC from the SEC’s website at http://www.sec.gov. In addition, the proxy statement and Arc Logistics’ Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 14(d) of the Securities Exchange Act of 1934, as amended, will be available free of charge through Arc Logistics’ website at http://arcxlp.com as soon as reasonably practicable after they are electronically filed with, or furnished to, the SEC.

Participants in the Solicitation

Arc Logistics and its directors and executive officers may be deemed to be participants in the solicitation of proxies from the unitholders of Arc Logistics in connection with the Proposed Transaction. Information about the directors and executive officers of Arc Logistics is set forth in Arc Logistics’ Annual Report on Form 10-K filed with the SEC for the year ended December 31, 2016. This document can be obtained free of charge from the sources indicated above. Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the proxy statement and other relevant materials to be filed with the SEC when they become available.

Forward-Looking Statements

This communication contains “forward-looking statements.” Certain expressions including “believe,” “expect,” “intends,” or other similar expressions are intended to identify Arc Logistics’ current expectations, opinions, views or beliefs concerning future developments and their potential effect on Arc Logistics. While management believes that these forward-looking statements are reasonable when made, there can be no assurance that future developments affecting Arc Logistics will be those that it anticipates. The forward-looking statements involve significant risks and uncertainties (some of which are beyond Arc Logistics’ control) and assumptions that could cause actual results to differ materially from Arc Logistics’ historical experience and its present expectations or projections. Additional information concerning factors that could cause Arc Logistics’ actual results to differ can be found in Arc Logistics’ public periodic filings with the SEC, including Arc Logistics’ Annual Report on Form 10-K for the year ended December 31, 2016 and any updates thereto in Arc Logistics’ subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

Among other risks and uncertainties, there can be no guarantee that the Proposed Transaction will be completed, or if it is completed, the time frame in which it will be completed. The Proposed Transaction is subject to the satisfaction of certain conditions contained in the Merger Agreement. The failure to complete the Proposed Transaction could disrupt certain of Arc Logistics’ plans, operations, business and employee relationships.

These factors are not necessarily all of the important factors that could cause actual results to differ materially from those expressed in any of the forward-looking statements contained herein. Other unknown or unpredictable factors could also have material adverse effects on Arc Logistics’ future results. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date thereof. Arc Logistics undertakes no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise.

Investor Contact:
IR@arcxlp.com
www.arcxlp.com
212-993-1290

 

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