TransMontaigne Partners LP, Denver CO, 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 from TransMontaigne Inc for an aggregate purchase price of approximately $125 million, according to TransMontaigne Partners information.
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 the acquisition of the terminals, the partnership entered into a terminaling services agreement with Morgan Stanley Capital Group Inc, which agreed to throughput a volume of refined product that will result in minimum throughput payments to the Partnership of approximately $31 million for the contract year ending December 31, 2008, with stipulated annual increases in throughput fees each contract year thereafter.
At the same time, the partnership announced that it has closed on the acquisition from Rio Vista Energy Partners LP of its terminal facility in Matamoros, Mexico, two pipelines from Brownsville TX to Matamoros, Mexico, with associated rights of way and easements and 47 acres of land, together with a permit to distribute liquefied petroleum gas to Mexico's state-owned petroleum company. The total purchase price for these LPG assets was approximately $11 million.