Kirby Corporation Completes The Purchase Of Penn Maritime
HOUSTON, Dec. 14, 2012
HOUSTON, Dec. 14, 2012 /PRNewswire/ -- Kirby Corporation ("Kirby") (NYSE:KEX)
announced today the completion of the acquisition of Penn Maritime Inc. and
Maritime Investments LLC ("Penn"), 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 was approximately $299 million (before
post-closing adjustments and transaction fees), consisting of $146 million of
cash, $29 million through the issuance of 500,000 shares of Kirby common stock
valued at $58.16 per share, and $124 million for the retirement of Penn's
debt. The cash portion of the consideration and retirement of Penn's debt
were financed from the proceeds of a new issue of unsecured senior notes.
The new unsecured senior notes, closed on December 13, 2012, provide for $500
million in fixed rate debt with $150 million at a 7-year maturity at 2.79% and
$350 million at a 10-year maturity at 3.34%. On December 14, 2012, $275
million of the unsecured senior notes were drawn to close the Penn
acquisition, with the balance to be drawn in February 2013 primarily to
replace $200 million of senior notes due February 28, 2013.
Penn's fleet, comprised of 18 double-hulled tank barges with a capacity of 1.9
million barrels and 16 tugboats, operates 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.
Kirby Corporation, based in Houston, Texas, is the nation's largest domestic
tank barge operator, transporting bulk liquid products throughout the
Mississippi River System, the Gulf Intracoastal Waterway, coastwise along all
three United States coasts and in Alaska and Hawaii. Kirby transports
petrochemicals, black oil products, refined petroleum products and
agricultural chemicals by tank barge. Through the diesel engine services
segment, Kirby provides after-market service for medium-speed and high-speed
diesel engines and reduction gears used in marine and power generation
applications. Kirby also distributes and services high-speed diesel engines,
transmissions, pumps, compression products and manufactures and remanufactures
oilfield service equipment, including pressure pumping units, for the
land-based pressure pumping and oilfield service markets.
Statements contained in this press release with respect to the future are
forward-looking statements. These statements reflect management's reasonable
judgment with respect to future events. Forward-looking statements involve
risks and uncertainties. Actual results could differ materially from those
anticipated as a result of various factors, including cyclical or other
downturns in demand, significant pricing competition, unanticipated additions
to industry capacity, changes in the Jones Act or in U.S. maritime policy and
practice, fuel costs, interest rates, weather conditions, and timing,
magnitude and number of acquisitions made by Kirby. Forward-looking
statements are based on currently available information and Kirby assumes no
obligation to update such statements. A list of additional risk factors can
be found in Kirby's annual report on Form 10-K for the year ended December 31,
2011, filed with the Securities and Exchange Commission.
SOURCE Kirby Corporation
Contact: Steve Holcomb, +1-713-435-1135
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