TransMontaigne closes two acquisitions
Feb 1, 2008 12:00 PM
TransMontaigne Partners L.P. has closed the acquisition of 21 refined petroleum products terminaling facilities and associated real property, improvements, easements, licenses, and permits along the Colonial and Plantation Pipelines (Southeast Terminals) from TransMontaigne Inc. for an aggregate purchase price of approximately $125 million. The terminaling facilities have aggregate active storage capacity of approximately nine million barrels. The partnership will borrow approximately $125 million under its existing senior secured credit facility to finance the acquisition.
In connection with this acquisition, the partnership entered into a terminaling services agreement with Morgan Stanley Capital Group Inc. The terminaling services agreement began Jan. 1, 2008, and has a seven-year term expiring Dec. 31, 2014, subject to a seven-year renewal option at the election of Morgan Stanley Capital Group. Under this agreement, Morgan Stanley Capital Group has agreed to throughput a volume of refined product that will result in minimum throughput payments to the partnership of about $31 million for the contract year ending Dec. 31, 2008, with stipulated annual increases in throughput fees each contract year thereafter.
The partnership also has closed on the acquisition from Rio Vista Energy Partners L.P. of its terminal facility in Matamoros, Mexico, two pipelines from Brownsville TX to Matamoros, with associated rights of way and easements and 47 acres of land, together with a permit to distribute liquefied petroleum gas (LPG) to Mexico's state-owned petroleum company. Total purchase price for these LPG assets was approximately $11 million. These assets complement the partnership's existing LPG storage facilities at Brownsville.
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