TransMontaigne announces price in tender offer for 9 1/8% notes

By Laura Lutz

Des Moines, Aug. 21 - TransMontaigne Inc. set the pricing for its previously announced tender offer for its 9 1/8% senior subordinated notes due 2010.

The company will pay $1,068.46 per $1,000 principal amount, plus accrued interest. That amount includes a $30 consent payment.

Notes tendered after the consent deadline will not receive the consent payment.

The price is based on the 3.5% Treasury due May 31, 2007 and 50 basis points at 2 p.m. ET on Aug. 18.

As previously reported, the company had received tenders and consents for $198.505 million, or 99.25%, of the $200 million outstanding notes by Aug. 4.

Those consents allowed the company to amend the notes to eliminate the restrictive covenants and some events of default.

The tender offer ends at 8 a.m. ET on Sept. 1. The expiration, which was originally set for Aug. 17, was extended on Aug. 7.

On June 22, the company said it will redeem or defease its 9 1/8% series B senior subordinated notes or amend the securities to allow them to remain outstanding as part of its acquisition by Morgan Stanley Capital Group Inc.

On June 20, SemGroup, LP said it ended its tender offer for TransMontaigne's 9 1/8% notes after previously announcing it had dropped out of the bidding for TransMontaigne.

Global Bondholder Services is the information agent (866 795-2200 or call collect 212 430-3774). Morgan Stanley & Co. Inc. is the dealer manager and solicitation agent (800 624-1808 or call collect 212 761-5746).

TransMontaigne is a Denver-based refined petroleum products terminaling and pipeline company.

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