NGL Energy Partners announced it’s selling TransMontaigne Product Services (Tpsl) and associated assets to an unnamed buyer for roughly $300 million, including equity consideration, inventory and net working capital, Kallanish Energy reports.
The divested assets include:
* TPSL Terminaling Services Agreement with TransMontaigne Partners LP, including the exclusive rights to utilize 18 terminals
* Line space along Colonial and Plantation Pipelines
* Two refined products terminals in Georgia and multiple third-party throughput agreements
* All associated customer contracts, inventory and other working capital associated with the assets.
“NGL continues to focus on its core areas where we have competitive strength. The sale of Tpsl is part of this strategy and a result of the strategic review of the refined products business announced earlier this year,” said Mike Krimbill, NGL’s CEO.
Krimbill added the sale reduces NGL’s inventory and working capital associated with the business, reduces borrowings on NGL’s working capital revolver and enhances the partnership’s liquidity and overall leverage profile.
The transaction is expected to close during the second fiscal quarter, ended Sept. 30. TD Securities (USA) LLC and Credit Suisse Securities (USA) LLC are acting as financial advisors to NGL. Winston & Strawn LLP is serving as legal counsel.
Oklahoma-based NGL Energy Partners owns and operates four primary businesses: water solutions, crude oil logistics, natural gas liquids logistics and refined products/renewables.
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