NGL Energy Partners LP submitted a non-binding proposal to the conflicts committee of the board of directors of TransMontaine GP LLC, the general partner of TransMontaigne Partners LP (TLP), in which each outstanding common unit of TLP would be exchanged for one common unit of NGL. The transaction would be structured as a merger of TLP with a wholly owned subsidiary of NGL Energy Partners.

In a letter to members of the conflicts committee, NGL Energy Partners CEO and director H. Michael Krimbill wrote, “We believe the proposed transaction provides substantial value and strategic merits to the unitholders of TLP with minimal execution risk.” Listed benefits included increased liquidity of the pro forma MLP, access to considerable capital to fund growth projects and increased distribution to TLP common unitholders.

The proposed transaction is subject to negotiation and execution of a definitive agreement, the approval of the TransMontaigne GP board of directors and conflicts committee and any requisite unitholder under applicable law.