TransMontaigne Negotiating Sale of Assets
Jul 1, 2001 12:00 PM
TransMontaigne Inc has entered into a letter of intent with Buckeye Partners LP regarding Buckeye's purchase of TransMontaigne's Norco refined petroleum product pipeline system and associated storage, product distribution, and delivery facilities that run from Chicago IL to Fort Madison IA; and from Chicago to Toledo OH, as well as the Indianapolis IN refined-products storage terminal.
TransMontaigne also announced execution of a letter of intent with Williams Energy Partners LP regarding the purchase by Williams of TransMontaigne's Little Rock AR refined petroleum products terminal.
Both transactions are contingent upon, among other things, negotiation and execution of a definitive agreement, receipt of applicable regulatory approvals, and approval by the respective boards of directors. Both transactions are expected to close before the end of second-quarter 2001.
TransMontaigne expects to realize about $115 million in cash proceeds from the sale of these assets and related products inventory, which will be used to reduce long-term debt. TransMontaigne said these transactions will add to its net cash flow and are part of the final phase of the company's restructuring, which began 18 months ago.
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