TRANSMONTAIGNE PARTNERS L.P. (NYSE:TLP) Files An 8-K Entry into a Material Definitive AgreementItem 1.01 Entry into a Material Definitive Agreement
Underwriting Agreement
On February7, 2018, TransMontaigne Partners L.P., a Delaware limited partnership (the “Partnership”), TLP Finance Corp., a Delaware corporation (“Finance Corp” and together with the Partnership, the “Issuers”), TransMontaigne GP L.L.C., a Delaware limited liability company and the general partner of the Partnership (the “General Partner”) and certain subsidiary guarantors (the “Guarantors”) entered into an Underwriting Agreement (the “Underwriting Agreement”) with RBC Capital Markets, LLC, as representative of the several underwriters named therein (collectively, the “Underwriters”), to sell $300 million aggregate principal amount of the Issuers’ 6.125% Senior Notes due 2026 (the “Notes”). The offering of the Notes (the “Offering”) was registered with the Securities and Exchange Commission (the “Commission”) to a Registration Statement on FormS-3 (File No.333-211367), as amended, which was declared effective by the Securities and Exchange Commission on September2, 2016 (the “Registration Statement”), as supplemented by a prospectus supplement, dated February7, 2018 (the “Prospectus Supplement”), filed by the Issuers with the Commission on February9, 2018 to Rule424(b)(5)under the Securities Act of 1933, as amended (the “Act”).
The Offering closed on February12, 2018. The Partnership received net proceeds (after deducting underwriting discounts and commissions and offering expenses) from the Offering of approximately $293.4 million. As described in the Prospectus Supplement, the Partnership intends to use the net proceeds from the Offering to repay existing indebtedness under the Partnership’s revolving credit facility, for general partnership purposes and to pay transaction fees and expenses.
The Underwriting Agreement contains customary representations, warranties and agreements of the Issuers and Guarantors, and customary conditions to closing, obligations of the parties and termination provisions. The Partnership has agreed to indemnify the Underwriters against certain liabilities, including liabilities under the Act, or to contribute to payments the Underwriters may be required to make because of any of those liabilities.
The foregoing description of the Underwriting Agreement is not complete and is qualified in its entirety by reference to the full text of the Underwriting Agreement, which is attached as Exhibit1.1 hereto. A legal opinion delivered relating to the Notes is filed as Exhibit 5.1 hereto.
Indenture
The Issuers issued the Notes to an indenture, dated as of February12, 2018 (the “Base Indenture”), by and among the Issuers and U.S. Bank National Association, as trustee (the “Trustee”), as amended and supplemented by the First Supplemental Indenture, dated as of February12, 2018 (the “First Supplemental Indenture”), by and among the Issuers, the Guarantors and the Trustee, setting forth the specific terms applicable to the Notes. The Base Indenture, as amended and supplemented by the First Supplemental Indenture, is referred to herein as the “Indenture.”
The Notes will mature on February15, 2026. Interest on the Notes is payable semi-annually in arrears on February15 and August15 of each year, beginning on August15, 2018. The Notes will be fully and unconditionally guaranteed, jointly and severally, on a senior unsecured basis by each of the Issuers’ existing wholly owned domestic subsidiaries and their future wholly owned domestic subsidiaries, in each case that guarantee obligations under the Partnership’s revolving credit facility. The Notes and the Guarantees rank equally in right of payment with all of the Issuers’ and the Guarantors’ existing and future unsecured senior indebtedness and senior to all of the Issuers’ and the Guarantors’ future subordinated indebtedness. The Notes and the Guarantees are effectively subordinated in right of payment to all of the Issuers’ and the Guarantors’ existing and future secured debt, including debt under the Partnership’s revolving credit agreement, to the extent of the value of the assets securing such debt, and are structurally subordinated to all liabilities of the Partnership’s subsidiaries (other than Finance Corp.) that do not guarantee the Notes.
At any time prior to February15, 2021, the Issuers may on any one or more occasions redeem up to 35% of the aggregate principal amount of the Notes issued under the Indenture at a redemption price of 106.125% of the principal amount of the Notes, plus accrued and unpaid interest, if any, to, but not including, the redemption date, with the net cash proceeds of certain equity offerings. On and after February15, 2021, the Issuers may redeem all or a part of the Notes at redemption prices (expressed as percentages of principal amount) equal to (i)104.594% for the twelve-month period beginning on February15, 2021; (ii)103.063% for the twelve-month period beginning on February15, 2022;
