June 7, 2017 - 8:19 AM EDT
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Featured Company News - Tallgrass Energy Announces Revolving Credit Facility Extension; Plans to Develop a New Terminal in Key Colorado Oil Complex

Research Desk Line-up: Transmontaigne Partners Post Earnings Coverage

LONDON, UK / ACCESSWIRE / June 7, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Tallgrass Energy Partners, L.P. (NYSE: TEP). The Company announced on June 05, 2017, that it has entered into a $1.75 billion Second Amended and Restated Credit Agreement (Amended Credit Agreement) with Wells Fargo Bank, as administrative agent and collateral agent, and a syndicate of lenders. The Amended Credit Agreement, subject to being executed, amends and restates the Company's existing revolving credit facility and extends the maturity date from May 13, 2018, to June 02, 2022. For immediate access to our complimentary reports, including today's coverage, register for free now at:

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Discover more of our free reports coverage from other companies within the Oil & Gas Pipelines industry. Pro-TD has currently selected Transmontaigne Partners L.P. (NYSE: TLP) for due-diligence and potential coverage as the Company announced on May 09, 2017, its financial and operating results for Q1 2017. Tune in to our site to register for a free membership, and be among the early birds that get our report on Transmontaigne Partners when we publish it.

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The Announcement

According to Tallgrass Energy, the amended credit facility, which delivers additional flexibility and reduced pricing, is a result of the Company's exceptional financial performance over the past 4 years, and particularly, due to its conservative balance sheet. The Amended Credit Agreement initiates the following aspects:

1. Reduced interest rate and relaxation of certain covenants, including the increase in certain applicable limits and baskets.

2. If and when Tallgrass Energy achieves certain specified credit ratings, the liens securing the Amended Credit Agreement will be released automatically.

3. Certain restrictive covenants will be relaxed significantly or will cease to apply and the applicable margin for both base rate and Eurodollar rate loans and the commitment fee on the unused committed amount will be decreased by pre-determined amounts.

New Terminal in Colorado Oil Complex

Tallgrass Energy additionally announced on June 05, 2017, that through its subsidiaries, i.e., Tallgrass Terminals, LLC, and Tallgrass Pony Express Pipeline, LLC, it has signed a definitive agreement with Saddle Butte Pipeline to develop the Tallgrass Grasslands Terminal. The terminal will be located strategically, at the center of the Platteville, Colorado oil terminal complex and will interconnect with Saddle Butte's Denver-Julesburg Basin crude oil gathering system.

The Platteville Extension is set to have an ultimate takeaway capacity of at least 80,000 barrels of crude oil per day and is expected to be in service by Q2 FY18. Saddle Butte's Milton Terminal will also act as an origin point on Pony Express, offering Pony Express to deliver direct refinery and Cushing terminal connections to Saddle Butte's producer customers in the near-term while the Tallgrass Grasslands Terminal is developed. The Milton terminal will resume its operations as an origin point when the terminal is operational. Tallgrass Terminals, a Tallgrass Energy subsidiary, will wholly own and operate the Tallgrass Grasslands terminal when it is completed.

Company Growth prospects

Tallgrass Energy is a growth-oriented, midstream energy operator, where it offers transportation, storage, terminal and processing assets, that act as a crucial infrastructure for the nation's most prolific crude oil and natural gas basins. The Company has recently aimed at inorganic expansion through acquisitions. Tallgrass Energy recently announced on May 17, 2017, that it has entered into an agreement to acquire DCP Midstream's Douglas natural gas gathering system in the Powder River Basin for about $128 million. The Douglas gathering system includes about 1,500 miles of gathering lines across four counties in Wyoming. The system is also the primary gathering system for Tallgrass Midstream Douglas processing plant. The gathering system is complementary to the Company's Casper and Douglas processing facilities and offers excellent operational growth for the Company.

Last Close Stock Review

At the closing bell, on Tuesday, June 06, 2017, Tallgrass Energy Partners' stock fell 1.66%, ending the trading session at $47.50. A total volume of 416.90 thousand shares were traded at the end of the day, which was higher than the 3-month average volume of 187.26 thousand shares. In the last six months and previous twelve months, shares of the Company have advanced 3.49% and 4.19%, respectively. Moreover, the stock gained 0.11% since the start of the year. The stock is trading at a PE ratio of 17.17 and has a dividend yield of 7.03%. The stock currently has a market cap of $3.55 billion.

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Source: ACCESSWIRE (June 7, 2017 - 8:19 AM EDT)

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