0001193125-17-232195.txt : 20170721 0001193125-17-232195.hdr.sgml : 20170721 20170720192232 ACCESSION NUMBER: 0001193125-17-232195 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 3 FILED AS OF DATE: 20170721 DATE AS OF CHANGE: 20170720 GROUP MEMBERS: TESORO ALASKA CO LLC GROUP MEMBERS: TESORO LOGISTICS GP, LLC GROUP MEMBERS: TESORO REFINING & MARKETING CO LLC SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: TESORO LOGISTICS LP CENTRAL INDEX KEY: 0001507615 STANDARD INDUSTRIAL CLASSIFICATION: PIPE LINES (NO NATURAL GAS) [4610] IRS NUMBER: 274151603 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-86251 FILM NUMBER: 17975307 BUSINESS ADDRESS: STREET 1: 19100 RIDGEWOOD PARKWAY CITY: SAN ANTONIO STATE: TX ZIP: 78259 BUSINESS PHONE: 210-626-6000 MAIL ADDRESS: STREET 1: 19100 RIDGEWOOD PARKWAY CITY: SAN ANTONIO STATE: TX ZIP: 78259 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: TESORO CORP /NEW/ CENTRAL INDEX KEY: 0000050104 STANDARD INDUSTRIAL CLASSIFICATION: PETROLEUM REFINING [2911] IRS NUMBER: 950862768 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A BUSINESS ADDRESS: STREET 1: 19100 RIDGEWOOD PKWY CITY: SAN ANTONIO STATE: TX ZIP: 78259-1828 BUSINESS PHONE: 210 626-6000 MAIL ADDRESS: STREET 1: 19100 RIDGEWOOD PKWY CITY: SAN ANTONIO STATE: TX ZIP: 78259-1828 FORMER COMPANY: FORMER CONFORMED NAME: TESORO PETROLEUM CORP /NEW/ DATE OF NAME CHANGE: 19920703 SC 13D/A 1 d599529dsc13da.htm SC 13D AMENDMENT NO. 9 SC 13D Amendment No. 9

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

SCHEDULE 13D

Under the Securities Exchange Act of 1934

(Amendment No. 9)*

 

 

Tesoro Logistics LP

(Name of Issuer)

Common Units

(Title of Class of Securities)

88160T107

(CUSIP Number)

Francis J. Aquila

Sullivan & Cromwell LLP

125 Broad Street

New York, New York 10004-2498

(212) 558-4000

(Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications)

July 20, 2017

(Date of Event Which Requires Filing of This Statement)

 

 

If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because § 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g) check the following box.  ☐

 

 

Note: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See Rule 13d-7 for other parties to whom copies are to be sent.

 

 

 

* The remainder of this cover page shall be filled out for a reporting person’s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.

The information required on the remainder of this cover page shall not be deemed to be “filed” for the purpose of section 18 of the Securities Exchange Act of 1934 (“Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act.

 

 

 


CUSIP No: 88160T107  

 

  1   

Names of reporting persons.

 

Tesoro Corporation

 

I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY).

 

27-4151603

  2  

Check the appropriate box if a member of a group

(a)  ☐        (b)  ☒

 

  3  

SEC use only

 

  4  

Source of funds

 

AF

  5  

Check box if disclosure of legal proceedings is required pursuant to Items 2(d) or 2(e)

 

  6  

Citizenship or place of organization

 

Delaware

Number of

shares

  beneficially  

owned by

each

reporting

person

with

 

     7    

Sole voting power

 

15,620,925

     8   

Shared voting power

 

18,434,1171

     9   

Sole dispositive power

 

15,620,9251

   10   

Shared dispositive power

 

18,434,1171

  11  

Aggregate amount beneficially owned by each reporting person

 

34,055,0421

  12  

Check box if the aggregate amount in Row (11) excludes certain shares

 

  13  

Percent of class represented by amount in Row (11)

 

31.5%2

  14  

Type of reporting person

 

CO

 

1. The Reporting Person may also be deemed to be the indirect beneficial owner of the 2.0% general partner interest in Tesoro Logistics LP (the “Issuer”).
2. Based upon approximately 108,002,273 common units representing limited partner interests (“Common Units”) of the Issuer issued and outstanding as of March 31, 2017, with such figure provided to the Reporting Persons by the Issuer.


CUSIP No: 88160T107  

 

  1   

Names of reporting persons.

 

Tesoro Refining & Marketing Company LLC

 

I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY).

 

76-0489496

  2  

Check the appropriate box if a member of a group

(a)  ☐        (b)  ☒

 

  3  

SEC use only

 

  4  

Source of funds

 

OO

  5  

Check box if disclosure of legal proceedings is required pursuant to Items 2(d) or 2(e)

 

  6  

Citizenship or place of organization

 

Delaware

Number of

shares

  beneficially  

owned by

each

reporting

person

with

 

     7    

Sole voting power

 

0

     8   

Shared voting power

 

8,219,0021

     9   

Sole dispositive power

 

0

   10   

Shared dispositive power

 

8,219,0021

  11  

Aggregate amount beneficially owned by each reporting person

 

8,219,0021

  12  

Check box if the aggregate amount in Row (11) excludes certain shares

 

  13  

Percent of class represented by amount in Row (11)

 

7.6%2

  14  

Type of reporting person

 

OO

 

1. Includes 151,021 Common Units held indirectly through the Reporting Person’s wholly-owned subsidiary Carson Cogeneration Company. The Reporting Person may also be deemed to be the indirect beneficial owner of the 2.0% general partner interest in the Issuer.
2. Based upon approximately 108,002,273 Common Units of the Issuer issued and outstanding as of March 31, 2017, with such figure provided to the Reporting Persons by the Issuer.


CUSIP No: 88160T107  

 

  1   

Names of reporting persons.

 

Tesoro Alaska Company LLC

 

I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY).

 

74-1646130

  2  

Check the appropriate box if a member of a group

(a)  ☐        (b)  ☒

 

  3  

SEC use only

 

  4  

Source of funds

 

AF

  5  

Check box if disclosure of legal proceedings is required pursuant to Items 2(d) or 2(e)

 

  6  

Citizenship or place of organization

 

Delaware

Number of

shares

  beneficially  

owned by

each

reporting

person

with

 

     7    

Sole voting power

 

0

     8   

Shared voting power

 

571,065

     9   

Sole dispositive power

 

0

   10   

Shared dispositive power

 

571,065

11  

Aggregate amount beneficially owned by each reporting person

 

571,065

12  

Check box if the aggregate amount in Row (11) excludes certain shares

 

13  

Percent of class represented by amount in Row (11)

 

0.5%1

14  

Type of reporting person

 

OO

 

1. Based upon approximately 108,002,273 Common Units of the Issuer issued and outstanding as of March 31, 2017, with such figure provided to the Reporting Persons by the Issuer.


CUSIP No: 88160T107  

 

  1   

Names of reporting persons.

 

Tesoro Logistics GP, LLC

 

I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY).

 

27-4151395

  2  

Check the appropriate box if a member of a group

(a)  ☐        (b)  ☒

 

  3  

SEC use only

 

  4  

Source of funds

 

OO

  5  

Check box if disclosure of legal proceedings is required pursuant to Items 2(d) or 2(e)

 

  6  

Citizenship or place of organization

 

Delaware

Number of

shares

  beneficially  

owned by

each

reporting

person

with

 

     7    

Sole voting power

 

0

     8   

Shared voting power

 

9,644,0501

     9   

Sole dispositive power

 

0

   10   

Shared dispositive power

 

9,644,0501

  11  

Aggregate amount beneficially owned by each reporting person

 

9,644,0501

  12  

Check box if the aggregate amount in Row (11) excludes certain shares

 

  13  

Percent of class represented by amount in Row (11)

 

8.9%2

  14  

Type of reporting person

 

OO

 

1. The Reporting Person, sole general partner of the Issuer, also owns 2,202,880 general partner units representing a 2.0% general partner interest in the Issuer, as well as incentive distribution rights in the Issuer, entitling the Reporting Person to receive increasing percentages of quarterly distributions in excess of specified amounts.
2. Based upon approximately 108,002,273 Common Units of the Issuer issued and outstanding as of March 31, 2017, with such figure provided to the Reporting Persons by the Issuer.


Explanatory Note: This Amendment No. 9 (this “Amendment”) amends and supplements the statement on Schedule 13D filed by Tesoro Corporation (“Tesoro”), Tesoro Refining & Marketing Company LLC (“TRMC”), Tesoro Alaska Company LLC (“Tesoro Alaska”) and Tesoro Logistics GP, LLC (the “General Partner” and, collectively with Tesoro, TRMC and Tesoro Alaska, the “Reporting Persons”) on September 24, 2012, as amended on June 3, 2013, December 9, 2013, May 20, 2014, October 24, 2014, November 13, 2015, July 8, 2016, September 22, 2016 and April 17, 2017 (the “Initial Statement”). The Initial Statement shall not be modified except as specifically provided herein.

 

Item 4. Purpose of the Transaction.

Item 4 of the Initial Statement is hereby amended and supplemented as follows:

On July 20, 2017 representatives of the Issuer delivered a proposal (the “Proposal Letter”) to the Chairman of the conflicts committee of the board of the general partner of Western Refining Logistics, LP (“WNRL” and the board, the “WNRL Board”) to acquire all of the outstanding common units of WNRL representing limited partnership interests in WNRL (“WNRL Common Units”) in exchange for Common Units of the Issuer, at an exchange ratio of 0.4906 Common Units of Issuer for each WNRL Common Unit (the “Proposed Transaction”).

The foregoing description of the Proposal Letter does not purport to be complete and is qualified in its entirety by reference to the full text of the Proposal Letter which is filed as Exhibit 3 hereto and is incorporated by reference in its entirety into this Item 4.

There can be no assurance that any discussions that may occur between the Reporting Persons, the Issuer and WNRL will contain transaction terms consistent with those described in the Proposal Letter or result in the entry into a definitive agreement concerning a transaction or, if such a definitive agreement is reached, will result in the consummation of a transaction provided for in such definitive agreement. Discussions concerning a possible transaction may be terminated at any time and without prior notice. Entry into a definitive agreement concerning a potential transaction and the consummation of any such transaction is subject to a number of contingencies, which are beyond the control of the Reporting Person, including the satisfactory completion of due diligence, the approval of the board of directors of the general partner of the Issuer (the “Issuer Board”) and the WNRL Board, the approval of the conflicts committees established by the Issuer Board and the WNRL Board, and the satisfaction of any conditions to the consummation of a transaction set forth in any such definitive agreement.

The Reporting Persons do not intend to disclose developments with respect to the foregoing unless and until the WNRL Board and the Issuer Board have approved a specific transaction, if any, except as may be required by law. The foregoing is not intended to limit the matters previously disclosed in Item 4 of this Schedule 13D.

 

Item 7. Material to be Filed as Exhibits

Item 7 of the Initial Statement is hereby amended and supplemented as follows:

 

3.    Proposal Letter, dated July 20, 2017


SIGNATURE

After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.

Dated: July 20, 2017

 

TESORO CORPORATION
By:  

/s/ Kim K.W. Rucker

Kim K.W. Rucker
Executive Vice President, General Counsel and Secretary
TESORO REFINING & MARKETING COMPANY LLC
By:  

/s/ Kim K.W. Rucker

Kim K.W. Rucker
Executive Vice President
TESORO ALASKA COMPANY LLC
By:  

/s/ Kim K.W. Rucker

Kim K.W. Rucker
Executive Vice President and General Counsel
TESORO LOGISTICS GP, LLC
By:  

/s/ Kim K.W. Rucker

Kim K.W. Rucker
Executive Vice President and General Counsel
EX-99.3 2 d599529dex993.htm EX-99.3 EX-99.3

Exhibit 3

 

          LOGO
      Tesoro Logistics GP, LLC
      19100 Ridgewood Parkway
      San Antonio, TX 78259
      210 626 4280
      210 745 4494 Fax

July 20, 2017

Michael Linn

Chairman of the Conflicts Committee of the Board

212 N. Clark Street

El Paso, Texas 79905

Dear Michael:

Tesoro Logistics LP (“TLLP”) is pleased to submit this non-binding preliminary proposal to acquire Western Refining Logistics, LP (“WNRL”) in an all-stock transaction with an exchange ratio of 0.4906 TLLP common units for each WNRL common unit. This exchange ratio represents an attractive 9.7% premium to the exchange ratio as of November 16, 2016, one day prior to the announcement of Tesoro Corporation’s acquisition of Western Refining, Inc., and a 5.9% premium to the exchange ratio as of April 13, 2017, the last trading day prior to TLLP’s April 17, 2017 13-D filing. We believe our proposal outlined below offers WNRL unitholders a compelling combination of value, reliability and certainty.

The following is a summary of the key elements of our proposal:

 

    Purchase Price. This proposal is an all stock offer, with an exchange ratio of 0.4906 TLLP common units for each WNRL common unit.

 

    Transaction Structure. We expect to effect the transaction through a merger of a newly formed TLLP subsidiary into WNRL, with WNRL surviving as a wholly owned subsidiary of TLLP. Additionally, we expect to acquire the general partner interest in WNRL through the merger of another newly formed TLLP subsidiary into Western Refining Logistics GP, LLC (“WNRL GP”), with WNRL GP surviving as a wholly owned subsidiary of TLLP.

 

    Voting Agreement. As the owner of the majority of the outstanding limited partner interests in WNRL, we expect TSO to enter into a customary support agreement to vote for the proposed transaction.

 

    Other Conditions. Our proposal remains subject to the negotiation and execution of satisfactory definitive acquisition documentation. We expect that completion of the acquisition will be subject to conditions and approvals customary for a transaction of this type.


This letter will be promptly filed and disclosed to the public in accordance with applicable securities regulations. This letter is non-binding and does not, and is not intended to, impose any legal obligations on us. Only definitive acquisition documentation with respect to the proposed transaction shall have any legal effect.

We hope this proposal conveys our sincere interest in moving forward expeditiously. We look forward to working with you and hearing the committee’s thoughts regarding our proposal. Please do not hesitate to contact me with any questions.

 

Sincerely,

/s/ Gregory J. Goff

 

Gregory J. Goff

Chairman and Chief Executive Officer
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