USD Partners' Hardisty Rail Terminal in Alberta, Canada, loads different grades of Canadian crude oil from the Western Canada Sedimentary Basin onto rail cars. (Source: Shutterstock)
Houston-based USD Partners has reached a forbearance agreement with its lenders and administrative agent requiring the sale of the company’s Hardisty Rail Terminal in Alberta, Canada, before the end of the year.
USD announced the agreement through a press release on June 25. A forbearance agreement is a temporary postponement of loan payments granted by a lender instead of forcing the borrower into foreclosure or default. With creditors' approval, the facility's sale deadline may be extended into January 2025.
According to the release, USD has also agreed to an operations budget approved by the lenders’ administrative agent.
The Hardisty is one of three assets USD lists on the company’s website, along with the Stroud Terminal in Oklahoma and a railcar fleet.
In operation since 2014, the Hardisty is an origination terminal where different grades of Canadian crude oil from the Western Canada Sedimentary Basin are loaded onto rail cars.
The terminal is financed by a long-term take-or-pay contract to load diluent recovery unit (DRU) volumes.
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