TransMontaigne Partners LLC, a leading provider of integrated terminaling, storage, transportation, and related services for the bulk liquids industry, has announced its proposal to issue 450 million aggregate principal amount of senior unsecured notes due 2030 (the “Notes”). This private offering is being conducted under an exemption from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”). The issuance of the Notes is contingent upon market conditions and other factors, which may influence the timing and execution of the offering.
Strategic Use of Proceeds
The proceeds from the proposed Notes offering are earmarked for several key financial objectives aimed at strengthening TransMontaigne’s capital structure and supporting its $ broader corporate strategy. Specifically, the company intends to use the net proceeds to:
- Redeem Existing Debt: TransMontaigne plans to redeem all of its outstanding 6.125% Senior Unsecured Notes due 2026 (the “2026 Notes”) in full. The redemption will occur at par plus accrued interest and is expected to take place on February 5, 2025, subject to the successful completion of the Notes offering. A conditional notice of redemption will be delivered to holders of the 2026 Notes.
- Repay Credit Facility Indebtedness: A portion of the proceeds will be allocated to repay outstanding indebtedness under the company’s revolving credit facility, thereby reducing its overall borrowing costs and enhancing financial flexibility.
- Support Parent Company Obligations: TransMontaigne intends to make a distribution to TLP Finance Holdings, LLC, its direct parent (“TLP Finance”), to enable TLP Finance to repay its term loan due 2025. This step underscores the company’s commitment to aligning its financial obligations across its organizational structure.
- Cover Transaction Costs: The offering proceeds will Million also be used to pay fees and expenses associated with the issuance of the Notes and the related transactions.
- General Corporate Purposes: Any remaining funds will be utilized for general Million corporate purposes, providing TransMontaigne with additional resources to support ongoing operations, growth initiatives, and strategic investments.
By refinancing its existing debt and addressing near-term maturities, TransMontaigne aims to optimize its capital structure, reduce interest expenses, and position itself for long-term growth and stability.
Guarantees and Investor Targeting
The Notes will initially be fully and unconditionally guaranteed by all of TransMontaigne’s subsidiaries that currently guarantee its credit facility (collectively, the “Guarantors”). These guarantees provide an added layer of security for investors, reinforcing the company’s commitment to meeting its financial obligations.
The Notes are being offered exclusively to qualified institutional buyers in reliance on Rule 144A under the Securities Act. Additionally, the offering will target non-U.S. investors outside the United States pursuant to Regulation S under the Securities Act. It is important to note that the Notes will not be registered under the Securities Act or any state securities laws. As such, they may not be offered or sold in the United States absent an effective registration statement or an applicable exemption from registration requirements.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any security, nor does it constitute an offer, solicitation, or sale in any jurisdiction where such activity Million would be unlawful. Furthermore, this announcement does not serve as a formal notice of redemption for the 2026 Notes.
About TransMontaigne Partners LLC
Headquartered in Denver, Colorado, TransMontaigne Partners LLC is a premier provider of integrated terminaling, storage, transportation, and related services for customers engaged in the distribution and marketing of bulk liquids. With operations spanning key regions across the United States, including the Gulf Coast, Million Midwest, Houston and Brownsville, Texas, the Mississippi and Ohio rivers, the Southeast, the Pacific Northwest, and the West Coast, TransMontaigne plays a critical role in facilitating the efficient movement and storage of essential commodities.
The company’s extensive network of terminals and storage facilities supports a diverse range of industries, including energy, chemicals, and agriculture. By leveraging its expertise and infrastructure, TransMontaigne delivers tailored solutions that meet the unique needs of its customers while ensuring safety, reliability, and Million operational excellence.
Strengthening Financial Resilience
The proposed $450 million senior unsecured notes offering represents a significant step in TransMontaigne’s efforts to strengthen its financial resilience and create a more sustainable capital structure. By refinancing its 2026 Notes and addressing other debt obligations, the company is taking proactive measures to reduce its cost of capital and extend its debt maturity profile.
This strategic move comes at a time when companies across the energy and logistics sectors are increasingly focused on optimizing their balance sheets to navigate economic Million uncertainties and capitalize on growth opportunities. For TransMontaigne, the refinancing initiative aligns with its broader mission to enhance shareholder value while maintaining the flexibility needed to invest in its core business and pursue strategic expansion.
