NGL Energy Partners LP (NYSE:NGL) completed a multi-layered acquisition from Morgan Stanley affiliates July 2.

NGL purchased:

  • TransMontaigne Inc., the owner of TransMontaigne GP L.L.C., which is the general partner of TransMontaigne Partners L.P., a master limited partnership which trades on the New York Stock Exchange under the symbol TLP.
  • The limited partnership interest of TransMontaigne Partners L.P., held by TransMontaigne Inc., is about 17% of the outstanding units.
  • The limited partnership interest of TransMontaigne Partners L.P. held by affiliates of Morgan Stanley, which amount to about 3% of the outstanding units.
  • And certain entities associated with the TransMontaigne business as well as the related inventory and pipeline and other contract rights.

The purchase of Morgan Stanley’s energy business related to TransMontaigne was completed on a debt-free basis for a cash purchase price of $200 million, including working capital, plus $347 million for inventory transferred at the closing. The transaction did not involve the sale or purchase of any of the LP units owned by the public.

In connection with the acquisition, LCT Capital and UBS Investment Bank served as NGL’s financial advisors and Winston & Strawn LLP served as NGL’s legal counsel.

NGL Energy Partners LP intends to recommend to the board of directors of its general partner that NGL increase its quarterly distribution for the first fiscal quarter ended June 30, 2014, by $0.0375 to $0.58875 per outstanding limited partner unit from $0.55125 per unit, resulting in an annualized cash distribution of $2.355 per outstanding limited partner unit. On an annualized basis this represents an increase of $0.15 from $2.205 per unit to $2.355 per unit.