K-Sea Financing in Place – Kirby Taps Banks

On the last day of May, Kirby Corporation entered into a $540 million five-year unsecured floating rate term loan facility led by Wells Fargo, BofA Merrill Lynch and J.P. Morgan. Lenders include BTMU, Branch Banking & Trust Company, Compass Bank, RBS, U.S. Bank, Amegy Bank, Bank of Texas, Comerica, Keybank, Mizuho, Northern Trust and Royal Bank of Canada. Proceeds of the loan will be to provide financing for Kirby’s acquisition of K-Sea Transportation Partners L.P., with the amount drawn dependent on the final breakdown of the merger consideration between stock and cash.

Written by: marinemoney | Categories: Freshly Minted, The Week in Review | June 16th, 2011 | Add a Comment

Hornbeck Seizes Opportunity

Last Thursday, Hornbeck Offshore Services (“Hornbeck”) announced that it agreed to sell $250 million aggregate principal amount of its 8% Senior Notes due 2017 in a private placement pursuant to Rule 144A. Based upon demand, the offering was upsized by $50 million from the original transaction size announced the day prior. J.P. Morgan, Wells Fargo, Jefferies and Goldman Sachs were the joint lead book runners. Capital One, Comerica, DnB NOR and Fortis were also involved.

The net proceeds of approximately $237.3 million from the sale will be used to repay debt under the company’s revolving credit facility, which amounts may be re-borrowed. The remaining net proceeds will be used for general corporate purposes, which may include the retirement of other debt.