TransMontaigne Partners L.P. Acquires an Ownership Interest in the BOSTCO Houston Ship Channel Terminal Project
Denver, Colorado — TransMontaigne Partners L.P. (NYSE:TLP) announced that effective today it acquired a 42.5% ownership interest for approximately $79 million in Battleground Oil Specialty Terminal Company LLC (BOSTCO), which is developing a new black oil terminal facility on the Houston Ship Channel for handling residual fuel, feedstocks, distillates and other black oils. In connection with its acquisition, TLP has committed to make its pro rata share of the future capital contributions required to complete the initial phase of the BOSTCO project. The initial phase of the BOSTCO project, which is supported by long term contracts with customers, involves construction of 50 storage tanks with approximately 6.1 million barrels of storage capacity at an estimated cost of approximately $425 million. The BOSTCO facility’s docks will benefit from one of the deepest vessel drafts and nearest access points in the Houston Ship Channel and will be well positioned to capitalize on increasing exports of petroleum related products. Our investment in BOSTCO was funded with cash on hand and borrowings under our amended and restated senior secured credit facility provided by a syndicate of banks. In connection with our investment in BOSTCO, our credit facility was amended to increase the maximum revolving credit amount from $250 million to $350 million.
“TransMontaigne is excited to be able to rejoin Kinder Morgan in the BOSTCO project. This project will significantly increase our asset base and is expected to be accretive to the distributable cash flow of the Partnership once terminal operations commence.” said Charles Dunlap, Chief Executive Officer of TransMontaigne’s general partner. “This state of the art oil products storage terminal with deep water access will give us an important foothold in the Houston Ship Channel with the opportunity to add capacity in later phases at attractive rates of return.”
Read more here.