UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 3, 2001
KANEB SERVICES, INC.
(Exact name of registrant as specified in charter)
Delaware 001-05083 74-1191271
(State of Organization) (Commission File No.) (I.R.S. Employer
Identification No.)
2435 North Central Expressway
Richardson, Texas 75080
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (972) 699-4000
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Item 2. Acquisition or Disposition of Assets.
On January 3, 2001, the Registrant, through its wholly-owned
subsidiary, Kaneb Pipe Line Company, as general partner for and on behalf of
Kaneb Pipe Line Partners, L.P. ("KPP"), completed the acquisition of Shore
Terminals LLC. Shore Terminals owns seven terminals, four in California (three
in the San Francisco Bay area and one in Los Angeles) and one each in Tacoma,
Washington, Portland, Oregon and Reno, Nevada, with a total tankage capacity of
7.8 million barrels. All of the terminals handle petroleum products and, with
the exception of the Nevada terminal, have deep water access. The purchase price
was approximately $107,000,000 in cash and 1,975,000 units of limited
partnership interest of KPP. The acquisition, which will become a part of the ST
Services terminaling operations of KPP, will significantly increase ST Services'
presence on the West Coast.
Financing for the cash portion of the purchase price was supplied under
KPP's new $275,000,000 unsecured revolving credit with a bank group headed by
SunTrust Bank. Prior to closing the Shore transaction, proceeds from the
facility were used to repay all of KPP's existing domestic bank debt and private
placement notes, resulting in the release of all security interests in KPP's
property.
Item 7. Financial Statements and Exhibits.
(c) Exhibits.
10.1 Securities Purchase Agreement Among Shore Terminals LLC, Kaneb
Pipe Line Partners, L.P. and The Sellers Named Therein, dated
as of September 22, 2000, filed as Exhibit 10.1 to the
Exhibits of KPP's Current Report on Form 8-K ("Form 8-K"),
which exhibit is hereby incorporated by reference.
10.2 Amendment No. 1 To Securities Purchase Agreement, dated as of
November 28, 2000, filed as Exhibit 10.2 to the Form 8-K,
which exhibit is hereby incorporated by reference.
10.3 Registration Rights Agreement, dated as of January 3, 2001,
filed as Exhibit 10.3 to the Form 8-K, which exhibit is hereby
incorporated by reference.
SIGNATURES
KANEB SERVICES, INC.
Date: January _____, 2001 By: Michael R. Bakke, Controller
