Par Pacific Closes Sale-Leaseback Deal for 21 Hawaii C-stores

HOUSTON — Par Pacific Holdings Inc. and a subsidiary of Realty Income Corp. have officially closed on 21 sites as part of a sale-leaseback transaction that was announced earlier this month.

As part of the deal, Par Pacific sold 21 convenience store and fuel retail locations in Hawaii to Realty Income for $109.4 million. Additionally, Par Hawaii LLC, an indirect wholly owned subsidiary of Par Pacific, entered into a master lease agreement with Realty Income to leaseback, on a commercial triple-net basis, the sites for an initial 15-year term, subject to Par Hawaii's option to extend the lease for up to an additional 20 years.

There will be a separate closing for one additional property that is included in the existing purchase agreement. Par Pacific expects the deal to close during the first quarter.

The company used approximately $51.7 million of net cash proceeds to repay debt and associated obligations related to certain properties. It expects to use the remainder for general corporate purposes.

Par Pacific continues to operate its retail business at the leased sites pursuant to the agreement.

Realty Income Corp. is a publicly traded real estate investment trust.

Headquartered in Houston, Par Pacific owns and operates one of the largest energy networks in Hawaii with 148,000-bpd of combined refining capacity, a logistics system supplying the major islands of the state, and 91 retail locations. In the Pacific Northwest and the Rockies, it owns and operates 60,000-bpd of combined refining capacity, related multimodal logistics systems, and 33 retail sites. Par Pacific also owns 46 percent of Laramie Energy LLC, a natural gas production company with operations and assets concentrated in western Colorado.