TransMontaigne Partners closes 2 acquisitions, expects to up distribution by 5c |
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Published
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Mon, 31 Dec 2007 22:53
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SAN FRANCISCO (Thomson Financial) - TransMontaigne Partners L.P. said late Monday it has closed its acquisition of 21 refined petroleum products terminaling facilities and associated property along the Colonial and Plantation Pipelines from TransMontaigne Inc. for a total of $125 million.The facilities have an active storage capacity of roughly 9 million barrels.TransMontaigne Partners said it will borrow roughly $125 million under its existing senior secured credit facility to finance the deal.In connection with the acquisition, TransMontaigne said it has entered into a terminaling services agreement with Morgan Stanley Capital Group Inc. Under the agreement, Morgan Stanley has agreed to throughput a volume that will result in minimum throughput payments of $31 million for the contract year ending Dec. 31, 2008, along with annual increases in throughput fees each contract year thereafter.The agreement, which will begin Jan. 1, 2008, has a seven-year term and a seven-year renewal option at the election of Morgan Stanley.Denver-based TransMontaigne also said it has closed on the $11 million acquisition from Rio Vista Energy Partners L.P. off its terminal facility in Matamoros, Mexico, and two pipelines from Brownsville, Texas, to Matamoros.With the acquisitions and the expected performance of the company'sexisting operations, TransMontaigne said it expects to increase its quarterly cash distribution to unitholders by 5 cents to 8 cents a unit.Gabriel MadwaygmCOPYRIGHTCopyright Thomson Financial News Limited 2007. All rights reserved.The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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