TransMontaigne gets $600 million five-year loan at 175-275 bps spread

By Susanna Moon

Chicago, March 14 – TransMontaigne Partners LP obtained an amended $600 million five-year senior secured credit facility on Monday, according to a 10-K filing with the Securities and Exchange Commission.

The maximum borrowing line of credit may be increased by another $250 million with lender commitments.

Interest on the loans will range from Libor plus 175 basis points to 275 bps, based on leverage. The commitment fee is 37.5 bps to 50 bps.

Initially the interest rate is Libor plus 200 bps and the commitment fee 37.5 bps.

The obligations are secured by a first priority security interest in favor of the lenders in the majority of the company’s assets, including investments in unconsolidated affiliates, the filing noted.

Wells Fargo Securities, LLC and US Bank, NA were joint lead arrangers and joint bookrunners, US Bank, NA was syndication agent, Wells Fargo Bank, NA was administrative agent and Bank of America, NA, Citibank, NA, MUFG Union Bank NA and Royal Bank of Canada were documentation agents.

As of Dec. 31, the company’s outstanding borrowings under the facility was $291.8 million.

The facility also contains covenants with a total leverage ratio of no more than 4.75 times, a senior secured leverage ratio of no more than 3.75 times and a minimum interest coverage of no less than 3 times.

The terms also restrict the company’s ability to make cash distributions, acquisitions and investments.

The loans are due at maturity on March 31, 2022.

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

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