SemGroup sets pricing in tender for TransMontaigne's 9 1/8% notes

By Jennifer Chiou

New York, May 5 - SemGroup, LP said its TMG Acquisition Co. subsidiary set pricing in its tender offer and consent solicitation for TransMontaigne Inc.'s $200 million of 9 1/8% senior subordinated notes due 2010.

For each $1,000 principal amount, SemGroup will pay $1,078.60, which is based on a spread of 50 basis points over the yield of the 3 ½% U.S. Treasury note due May 31, 2007.

The total includes a consent payment of $30.00 per $1,000 that will only be paid to holders who tendered with consents by 5 p.m. ET on April 17.

Pricing was determined at 2 p.m. ET on May 19. The reference yield was 5.041% and the tender offer yield was 5.541%.

The tender ends at 11:59 p.m. ET on May 4. It was launched on April 3.

The consent solicitation is to eliminate substantially all of the restrictive covenants and certain events of default and other provisions in the note indenture.

The offer is subject to conditions, including the completion of the merger and the receipt of consents from holders of a majority of the notes.

Banc of America Securities LLC is dealer manager and solicitation agent (contact High Yield Special Products at 888 292-0070 or call collect 704 388-4813). Global Bondholder Services is the information agent (866 389-1500 or call collect 212 430-3774).

SemGroup is a Tulsa, Okla., midstream service company. TransMontaigne is a Denver-based refined petroleum products terminaling and pipeline company.

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