TRANSMONTAIGNE PARTNERS L.P. (NYSE:TLP) Files An 8-K Entry into a Material Definitive AgreementItem 1.01 Entry into a Material Definitive Agreement.
West Coast Acquisition
On November2, 2017, a wholly owned operating company subsidiary of TransMontaigne Partners L.P. (the “Partnership”), entered into an Asset Purchase Agreement (the “Purchase Agreement”) to which the Partnership will purchase the Martinez Terminal and Richmond Terminal (collectively, the “West Coast Terminal Facilities”) from Plains Products Terminals LLC (“Plains”), a wholly owned subsidiary of Plains All American Pipeline, L.P., for a total purchase price of $275 million (the “West Coast Acquisition”). The West Coast Terminal Facilities are two waterborne refined product and crude oil terminals with a total of 64 storage tanks with approximately 5.4 million barrels of aggregate storage capacity and have extensive connectivity to domestic and international crude oil and refined products markets through significant marine, pipeline, truck and rail logistics capabilities.
The Partnership intends to fund the purchase price of the West Coast Acquisition with proceeds from the public offering of common units, as described in 7.01 of this Current Report, and cash available from other sources.
Our obligation to consummate the West Coast Acquisition is subject to certain conditions, including, among others, (i)the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, (ii)the absence of any order or legal restraint prohibiting the consummation of the West Coast Acquisition, (iii)delivery of certificates and certain ancillary transaction agreements (as described further below), (iv)the absence of a material adverse effect (as defined in the Purchase Agreement) and (v)receipt of certain governmental authorizations and third party consents. The Purchase Agreement generally contains customary representations and warranties and covenants. We and Plains have agreed to indemnify each other and our and its respective affiliates and other representatives against certain losses resulting from any breach of their representations, warranties or covenants contained in the Purchase Agreement, subject to certain limitations and survival periods. We have agreed to indemnify Plains for all pre-closing environmental liabilities arising out of the West Coast Terminal Facilities and Plains also has agreed to indemnify us for certain specified liabilities.
The Purchase Agreement is filed as Exhibit10.1 to this Current Report on Form8-K, and the foregoing description of the Purchase Agreement is qualified in its entirety by reference to such exhibit. The Purchase Agreement is filed herewith to provide investors with information regarding its terms. It is not intended to provide any other factual information about the parties. In particular, the assertions embodied in the representations and warranties contained in the Purchase Agreement were made as of the date of the Purchase Agreement only and are qualified by information in confidential disclosure schedules provided by the parties to each other in connection with the signing of the Purchase Agreement. These disclosure schedules contain information that modifies, qualifies and creates exceptions to the representations and warranties set forth in the Purchase Agreement. Moreover, certain representations and warranties in the Purchase Agreement may have been used for the purpose of allocating risk between the parties rather than establishing matters of fact. Accordingly, you should not rely on the representations and warranties in the Purchase Agreement as characterizations of the actual statements of fact about the parties.
Item 1.01 Results of Operations and Financial Condition.
On November8, 2017, the Partnership announced its financial results for the three and nine months ended September30, 2017.A copy of the press release is attached hereto as Exhibit99.1 and incorporated herein by reference.
The information in this Item 1.01, including Exhibit99.1, is being furnished to Item 1.01 of Form8-K and shall not be deemed “filed” for purposes of Section18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in this current report shall not be incorporated by reference into any registration or other document to the Securities Act of 1933, as amended.