HANNIBAL, Ohio--(BUSINESS WIRE)--Ormet Corporation, a top U.S. producer of aluminum, today announced that Trafigura Beheer BV, through its wholly-owned subsidiary Impala Warehousing (US) LLC (collectively “Trafigura”), has acquired the assets of Ormet’s marine terminal and additional acreage located in Burnside, Louisiana. The alumina refinery adjacent to the bulk terminal, which is in the process of reopening, is not included in the purchase.
As part of the transaction, Trafigura will also provide terminal services to Ormet’s alumina refinery, the most important of which will be offloading bauxite and loading alumina. A Terminal Services Agreement (TSA) was executed as part of the sale, which will provide reliable loading and unloading services to the Burnside alumina refinery. The TSA has an initial term of 30 years.
Gross proceeds from the sale are approximately $28 million. Under Ormet’s Term Loan and Security Agreement, $10 million of the net proceeds will be used to pay down the Company’s long term debt at par.
“This is a step in improving Ormet’s competitiveness in a worldwide market. The sale releases the value of the Terminal and supports the restart and continued operation of the Burnside refinery. We look forward to working with Impala Warehousing on this long term partnership,” said Mike Tanchuk, Ormet’s CEO.
Certain statements contained in this press release constitute forward-looking statements within the meaning of the federal securities laws. Such statements are based on current expectations, and the actual results and the timing of certain events could differ materially from those projected in or contemplated by these forward-looking statements due to a number of factors. Readers are cautioned that Ormet's business is subject to significant risks and uncertainties.
Headquartered in Hannibal, Ohio, Ormet Corporation is a major U.S. producer of aluminum. For more information, visit the website at www.ormet.com.