Nov. 27, 2012
/PRNewswire/ -- Kirby Corporation ("Kirby") (NYSE: KEX) announced today that it has entered into an agreement to acquire Penn Maritime Inc. and Maritime Investments LLC (collectively, "Penn" or "Penn Maritime"), an operator of tank barges and tugboats participating in the coastal transportation of primarily black oil products in the United States. The total value of the transaction is approximately
(before post-closing adjustments and transaction fees) and will consist of cash, Kirby common stock and the retirement of Penn's debt.
The transaction will be financed through a combination of borrowing under Kirby's revolving credit facility, issuance of new unsecured fixed rate senior notes, and the issuance of Kirby common stock. The closing of the transaction is expected to occur in mid-to-late
, subject to certain conditions.
Under the terms of the agreement, the total value of the transaction is approximately
(before post-closing adjustments and transaction fees), consisting of
for all of the voting and nonvoting equity interests in Penn Maritime Inc. and Maritime Investments LLC and approximately
for the retirement of Penn's debt. The
consideration paid to Penn equity holders will include a combination of cash of approximately
and 500,000 shares of Kirby common stock.
The new unsecured fixed rate senior notes are scheduled to close in mid-December and provide for
in fixed rate debt with
at a 7-year maturity and
at a 10-year maturity. The pricing, inclusive of the amortization of up-front fees, is 2.79% for the 7-year and 3.34% for the 10-year maturities. Kirby anticipates drawing up to
for the closing of Penn prior to year end, with the balance drawn in
to replace the
of senior notes due
February 27, 2013
Penn operates a fleet of 18 heated, double-hulled tank barges, with a capacity of 1.9 million barrels, and 16 tugboats along the East Coast and Gulf Coast of the United States. Penn's tank barge fleet has an average age of approximately 13 years with a product mix that consists primarily of refinery feedstocks, asphalt and crude oil. Penn's customers include major oil companies and refiners, nearly all of whom are current Kirby customers for inland tank barge services.