TransMontaigne gets $565 million credit facility

By Sara Rosenberg

New York Sept. 1 - TransMontaigne Inc. closed on a new $400 million senior secured working capital revolving credit facility due Sept. 1, 2011 and a $165 million term loan due March 1, 2012 on Friday, according to an 8-K filed with the Securities and Exchange Commission.

Morgan Stanley acted as co-lead arranger, bookrunner and syndication agent on the revolver, and Wachovia acted as a co-lead arranger and administrative agent.

Morgan Stanley is the lender under the term loan.

Borrowings under the revolver can carry an interest rate of Libor plus 125 to 175 basis points depending on the excess of the borrowing base over the amount of borrowings outstanding, and the commitment fee can range from 25 to 35 bps.

The term loan carries an interest rate of Libor plus 400 bps.

There is a $100 million accordion feature under the revolver

The revolver replaces the company's previous $400 million working capital credit facility. Initial fundings under the new revolver were $200 million and the initial outstanding letters of credit had a face amount of $21 million.

Proceeds from the term loan were used to refinance existing debt and to help fund the acquisition of TransMontaigne by Morgan Stanley Capital Group Inc.

TransMontaigne is a Denver-based refined petroleum products marketing and distribution company.

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