U.S. midstream energy partnership Andeavor Logistics L.P. (ANDX) has announced it will acquire Western Refining Logistics L.P. (WNRL) in an all-equity transaction for about $1.8 billion, including Western Refining Logistics' outstanding debt. The transaction also includes 78 million common units issued to parent Andeavor in exchange for the cancellation of the partnership's incentive distribution rights for a value of about $3.9 billion and a $60 million increase in distribution waivers by Andeavor for the period 2017-2019 to $160 million. We are placing our ratings, including our 'BB+' corporate credit rating and senior unsecured issue-level rating, on Andeavor Logistics and its operating subsidiary, Tesoro Logistics Finance Corp., on CreditWatch with positive implications. We will look to resolve the CreditWatch listing sometime
