TransMontaigne Partners Finalizes Key Terminal Facility Sales

TransMontaigne Partners Finalizes Sale Agreements

TransMontaigne Partners LLC is excited to announce that it has entered into significant agreements for the sale of its terminal facilities located on Fisher Island in Miami and in Fairfax. This strategic move by TransMontaigne showcases its commitment to maximizing its asset value while ensuring that operations continue smoothly for its clients.

Details of the Miami Terminal Sale

The terminal on Fisher Island has an impressive active capacity, able to store approximately 700,000 barrels of marine fuels. The expected purchase price for this terminal sale is around $180 million. The anticipated closing of this sale is set for a specific date in mid-2025, adhering to customary closing conditions. After the closing, TransMontaigne will lease the terminal from the buyer, ensuring that it can continue to satisfy its existing customer agreements seamlessly.

Focus on Continued Service

This lease-back arrangement is vital as it allows TransMontaigne to maintain its customer commitments without interruption despite the change of ownership. The ability to keep servicing client relationships while ensuring financial growth through this sale reflects the company’s adaptive strategy in the fluid market of terminal facilities.

The Fairfax Terminal Transaction

In addition to the Fisher Island terminal, TransMontaigne also has plans to sell its Fairfax terminal, which holds approximately 500,000 barrels for gasoline, diesel, ethanol, and fuel additives. This facility is expected to sell for about $30.75 million, with closing anticipated to occur at the end of June 2026. This transaction does allow TransMontaigne certain rights that may extend the closing date, which indicates the flexibility built into the agreement, catering to operational efficiency.

Financial Implications of the Sales

Importantly, the proceeds from these sales will serve to pay down existing term debt obligations, contributing to the overall financial health of TransMontaigne. This decision underscores the company’s active management of its balance sheet, aiming for greater financial stability and support for future growth initiatives.

Comments from Leadership

“These terminal sales reflect the intrinsic value of TransMontaigne’s assets,” said Randy Maffett, Chief Executive Officer of TransMontaigne. He noted the transactions will enable the company to enhance its operational focus and drive strategic growth efforts to meet increasing customer demand and facilitate energy transition projects.

About TransMontaigne Partners LLC

TransMontaigne Partners LLC stands as a leader in the integrated terminaling, storage, transportation, and related services industry. With its headquarters in Denver, Colorado, the company operates across various regions in the United States, including the Gulf Coast, the Midwest, and along several major rivers. Its extensive network allows it to provide comprehensive services for clients engaged in bulk liquid distribution and marketing.

Frequently Asked Questions

What are the main benefits of these terminal sales for TransMontaigne?

The sales facilitate debt repayment and enable TransMontaigne to concentrate on strategic growth and servicing customer demands.

When is the expected closing date for these sales?

The Fisher Island terminal sale is expected to close in mid-2025, while the Fairfax terminal sale is anticipated to close by June 2026.

Why is the company leasing back the terminals after selling them?

Leasing back the terminals ensures that TransMontaigne can continue to meet its current customer commitments without disruption.

What capacity do the terminals hold?

The Fisher Island terminal has a capacity of approximately 700,000 barrels, and the Fairfax terminal holds around 500,000 barrels.

How does this sale align with TransMontaigne's strategic goals?

This sale allows TransMontaigne to focus on its long-term growth initiatives and energy transition projects while maintaining liquidity.

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