TransMontaigne Inc has announced the signing of separate purchase agreements by its wholly owned subsidiary, TransMontaigne Product Services Inc, with Rio Vista Energy Partners LP and Penn Octane Corp, to acquire, for total consideration of $27,500,000, their combined liquefied petroleum gas assets and refined products tankage.
This includes their Brownsville LPG and refined products terminal facility and tank farm; owned pipelines in the United States; LPG inventory; all of the outstanding stock of their respective Mexican subsidiaries and affiliates, which own and operate product pipelines and the Matamoros Terminal Facility; and the assignment of the Seadrift Pipeline lease, the PMI Trading Ltd sales agreement, and the ExxonMobil LPG supply contract.
In connection with the transaction, TransMontaigne agreed to loan Rio Vista $1,300,000. The loan is to be secured by the tank farm and certain LPG storage tanks at the Brownsville Terminal Facility and is subject to receipt of consent from RZB Finance LLC and the issuance of an estoppel letter from the Brownsville Navigation District.
The transaction is anticipated to close on or before Oct 31, 2005, and is subject to further due diligence by TransMontaigne.