NGL Energy Partners LP agreed to divest TransMontaigne Product Services LLC, which holds refined products midstream assets in the Southeast, to an unnamed buyer for about $300 million.
The assets in the deal include a terminaling services agreement with refined products transportation company TransMontaigne Partners LP; line space along the Colonial and Plantation pipelines; two refined products terminals in Georgia with third-party throughput agreements; and all customer contracts, inventory and working capital associated with the assets, according to an Aug. 8 news release.
The deal is also a result of the energy logistics partnership's strategic review of its refined products business, according to NGL Energy Partners CEO H. Michael Krimbill.
NGL Energy Partners expects to reduce letter of credit commitments after the sale, the partnership said. The proceeds would be used to pay down debt under NGL Energy Partners' revolving credit facility.
The transaction is scheduled to close in the second fiscal quarter. TD Securities (USA) LLC and Credit Suisse Securities (USA) LLC are financial advisers to NGL Energy Partners, while Winston & Strawn LLP is serving as its legal counsel.