Marathon Oil Corp. Completes Transactions With ACON Investments, TPG and Realty Income

HOUSTON & ESCONDIDO, Calif. -- Marathon Oil Corp. and its wholly owned subsidiary Marathon Petroleum Company LP has closed the transaction with ACON Investments LLC and TPG Capital for the sale of most of Marathon's Minnesota downstream assets which include 166 SuperAmerica convenience stores (including six stores in Wisconsin), the company announced this week.

In addition to the SuperAmerica c-stores the transaction included the 74,000 barrel per day St. Paul Park refinery and associated terminals, SuperMom's bakery and commissary, SuperAmerica Franchising LLC, interests in pipeline assets in Minnesota and associated inventories, the company stated.

Marathon stated that ACON and TPG formed Northern Tier Energy LLC to operate the assets as a stand-alone company. According to the release, the total sale value is approximately $935 million including Northern Tier preferred stock with a stated value of $80 million.

In related news, Realty Income Corp. announced this week that it completed the acquisition of 135 SuperAmerica stores and one support facility located in Minnesota and Wisconsin for approximately $248 million under 15-year, triple-net lease agreements.

The properties will be leased to newly formed companies owned and operated by Northern Tier Energy LLC, the company stated.

The c-stores average approximately 3,500 leasable square feet on approximately 1.14 acres and on average the individual locations have 6.5 multi-pump gasoline dispensers. Realty Income stated the stores are operationally strong with gallons sold and well above national averages with merchandise sales and posses strong cash-flow coverage of rent at the store levels. The company anticipates that the c-store industry will generate approximately 20 percent of its revenue moving forward.

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