NuStar Energy L.P. Announces Closing of Public Offering of Common Units and Exercise of Option to Purchase Additional Units

SAN ANTONIO--(BUSINESS WIRE)--NuStar Energy L.P. (NYSE:NS) announced today it has closed its previously announced public offering of 6,037,500 common units representing limited partner interests at $53.45 per common unit, including 787,500 common units sold to the underwriters pursuant to their option to purchase additional units, which the underwriters exercised in full on December 8, 2011. In the offering, 187,000 common units were sold to William E. Greehey, the Chairman of the board of directors of NuStar GP, LLC.

Total net proceeds (before expenses) from the sale of 6,037,500 common units in the offering are approximately $311.5 million. The partnership currently intends to use the net proceeds from the offering, including the general partner’s proportionate capital contribution, to reduce outstanding borrowings under its revolving credit facility.

Credit Suisse Securities (USA) LLC, BofA Merrill Lynch, Barclays Capital, Citigroup, Morgan Stanley and Wells Fargo Securities are acting as joint book-running managers of the offering. Deutsche Bank Securities, Goldman, Sachs & Co., Raymond James, Stifel Nicolaus Weisel and UBS Investment Bank are acting as co-managers of the offering.

This news release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. The offering may be made only by means of a prospectus and related prospectus supplement.

A copy of the prospectus supplement and the prospectus relating to this offering may be obtained from any of the underwriters, including:

Credit Suisse Securities (USA) LLC
One Madison Avenue
New York, New York 10010
Attn: Prospectus Department
Telephone: [phone]
E-mail: [e-mail]

BofA Merrill Lynch
4 World Financial Center
New York, NY 10080
Attention: Prospectus Department
E-mail: [e-mail]

Barclays Capital
c/o Broadridge Financial Solutions
1155 Long Island Avenue
Edgewood, NY 11717
Telephone: [phone]
E-mail: [e-mail]

Citigroup
Brooklyn Army Terminal
140 58th Street, 8th Floor
Brooklyn, NY 11220
Attention: Prospectus Dept.
Telephone: [phone]
E-mail: [e-mail]

Morgan Stanley
180 Varick Street, 2nd Floor
New York, NY 10014
Attention: Prospectus Dept.
Telephone: [phone]
E-mail: [e-mail]

Wells Fargo Securities
Attn: Equity Syndicate Dept.
375 Park Avenue
New York, NY 10152
Telephone: [phone]
Email: [e-mail]

You may also obtain these documents for free when they are available by visiting the Securities and Exchange Commission’s website at www.sec.gov.

NuStar Energy L.P. is a publicly traded, limited partnership based in San Antonio, with 8,417 miles of pipeline; 90 terminal and storage facilities that store and distribute crude oil, refined products and specialty liquids; and two asphalt refineries and a fuels refinery with a combined throughput capacity of 118,500 barrels per day. The partnership’s combined system has over 97 million barrels of storage capacity. One of the largest asphalt refiners and marketers in the U.S. and the second largest independent liquids terminal operator in the nation, NuStar has operations in the United States, Canada, Mexico, the Netherlands, including St. Eustatius in the Caribbean, the United Kingdom and Turkey.

Cautionary Statement Regarding Forward-Looking Statements

This press release includes forward-looking statements regarding future events. All forward-looking statements are based on the partnership's beliefs as well as assumptions made by and information currently available to the partnership. These statements reflect the partnership’s current views with respect to future events and are subject to various risks, uncertainties and assumptions. These risks, uncertainties and assumptions are discussed in NuStar Energy L.P.’s 2010 annual report on Form 10-K and subsequent filings with the Securities and Exchange Commission.