Moody's rates TransMontaigne loans B1

Moody's Investors Service said it assigned a B1 rating to the planned credit facilities of TransMontaigne Operating Co. LP, a subsidiary of TransMontaigne Partners LLC (TransMontaigne), and downgraded the ratings of TransMontaigne Partners, including its corporate family rating to B2 from B1, probability of default rating to B2-PD from B1-PD and the rating on its senior unsecured notes to Caa1 from B3. The SGL-3 speculative grade liquidity rating remains unchanged.

The term loan proceeds will be used to repay revolver borrowings, partially repay term loan debt at TransMontaigne's holding company parent, fund a distribution to the sponsor as compensation for the sponsor contributing the SeaPort assets to TransMontaigne and repay debt at SeaPort.

"The addition of the SeaPort assets will add three attractive terminals and the Olympic pipeline in the Pacific Northwest to TransMontaigne's portfolio of assets, providing greater earnings and geographic diversification of assets," commented James Wilkins, a Moody's vice president, in a press release. "However, the new term loan financing will increase the consolidated debt at TransMontaigne and its parent, weakening its credit profile.

The outlook is stable.

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