Moody’s might cut TransMontaigne

Moody's Investors Service said it placed the ratings of TransMontaigne Partners LP under review for downgrade, including the Ba3 corporate family rating, Ba3-PD probability of default rating and B2 rating on its senior unsecured notes.

Moody's affirmed the company's SGL-3 speculative grade liquidity rating.

The action follows the company's announcement that an affiliate of ArcLight Energy Partners Fund VI, LP has reached an agreement to purchase all the publicly held outstanding common units of TransMontaigne, the agency said.

“The acquisition of TransMontaigne's outstanding units will be predominately funded by a new $525 million term loan, which will greatly increase the amount of debt to be serviced by TransMontaigne's cash flow,” James Wilkins, Moody's vice president, senior analyst, said in a news release.

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