Williams announced Wednesday it has signed a definitive agreement to sell its
retail travel center operations for about $190 million cash, including fuel inventory,
merchandise and supplies.
The purchaser is Knoxville, Tenn.-based Pilot Travel Centers LLC. Pilot Travel
Centers is a joint venture 50% owned by Pilot Corp. and 50% owned by Marathon
Ashland Petroleum LLC.
The sale is projected to close in 60 days, subject to completion of the necessary
closing conditions and Hart-Scott-Rodino review. The asset package features 60
travel centers in 15 states. The store network stretches from Arizona to Florida and
is concentrated in the Ohio Valley and the southeastern United States.
Proceeds from the sale will be used to retire $109.2 million of debt associated with
the travel centers and for general corporate purposes. Williams TravelCenters Inc.,
based in Nashville, Tenn., employs about 2,000 people.
Steve Malcolm, chairman, president and chief executive officer of Williams, said,
"We are executing our plan to rebuild our finances. We're continuing to optimize our
cash position, reduce debt and focus on core businesses like gas pipelines, natural
gas production and midstream services such as gathering and processing."
Phil Wright, who was recently named Williams' chief restructuring officer in charge
of asset sales, said, "In addition to reducing debt, the transaction adds a great deal
of value from a practical standpoint. It raises cash, eliminates general and
administrative expenses for a sizeable workforce and removes a credit issue with
obtaining supply."
As a result of the sale, Williams expects to record a pre-tax impairment charge to
earnings in the third quarter of about $115 million.
Williams moves, manages and markets a variety of energy products, including
natural gas, liquid hydrocarbons, petroleum and electricity. Based in Tulsa, Okla.,
Williams' operations span the energy value chain from wellhead to burner tip.
Company information is available at
www.williams.com.
retail travel center operations for about $190 million cash, including fuel inventory,
merchandise and supplies.
The purchaser is Knoxville, Tenn.-based Pilot Travel Centers LLC. Pilot Travel
Centers is a joint venture 50% owned by Pilot Corp. and 50% owned by Marathon
Ashland Petroleum LLC.
The sale is projected to close in 60 days, subject to completion of the necessary
closing conditions and Hart-Scott-Rodino review. The asset package features 60
travel centers in 15 states. The store network stretches from Arizona to Florida and
is concentrated in the Ohio Valley and the southeastern United States.
Proceeds from the sale will be used to retire $109.2 million of debt associated with
the travel centers and for general corporate purposes. Williams TravelCenters Inc.,
based in Nashville, Tenn., employs about 2,000 people.
Steve Malcolm, chairman, president and chief executive officer of Williams, said,
"We are executing our plan to rebuild our finances. We're continuing to optimize our
cash position, reduce debt and focus on core businesses like gas pipelines, natural
gas production and midstream services such as gathering and processing."
Phil Wright, who was recently named Williams' chief restructuring officer in charge
of asset sales, said, "In addition to reducing debt, the transaction adds a great deal
of value from a practical standpoint. It raises cash, eliminates general and
administrative expenses for a sizeable workforce and removes a credit issue with
obtaining supply."
As a result of the sale, Williams expects to record a pre-tax impairment charge to
earnings in the third quarter of about $115 million.
Williams moves, manages and markets a variety of energy products, including
natural gas, liquid hydrocarbons, petroleum and electricity. Based in Tulsa, Okla.,
Williams' operations span the energy value chain from wellhead to burner tip.
Company information is available at
www.williams.com.
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