By Lisa Kerner
Charlotte, N.C., Dec. 20 - Kirby Corp. announced it will issue a total of $500 million of fixed-rate senior notes under a Dec. 13 note purchase agreement as follows:
• $150 million of 2.72% senior notes due Feb. 27, 2020; and
• $350 million of 3.29% senior notes due Feb. 27, 2023.
Kirby issued $82.5 million of the 2.72% notes and $192.5 million of the 3.29% notes for a total amount of $275 million on Dec. 13 to fund the acquisition of Penn Maritime Inc. and Maritime Investments LLC and to retire Penn Maritime's outstanding debt.
The remaining $225 million of the notes will be issued in February, and proceeds will be used primarily to refinance $200 million of floating-rate senior notes due Feb. 28, 2013, according to a form 8-K filed with the Securities and Exchange Commission.
Interest on the notes is payable semiannually, and no principal payments are required until maturity, the filing said.
Kirby may prepay at any time all or part of the notes at 100% of the principal amount, together with accrued and unpaid interest, plus any applicable make-whole amount.
The notes have a make-whole call at Treasuries plus 50 basis points.
Kirby is not permitted to have its ratio of EBITDA to interest expense be less than 2.5 to 1.0 for the period defined in the note purchase agreement.
Also, the company is required to not permit the ratio of funded debt to total capitalization to equal or exceed 0.6 to 1.0, or permit its priority debt to exceed 20% of consolidated net worth.
Purchasers include New York Life Insurance and Annuity Corp., ING USA Annuity and Life Insurance Co., Reliastar Life Insurance Co., Transamerica Financial Life Insurance Co., the Northwestern Mutual Life Insurance Co., State Farm Life Insurance Co., the Prudential Insurance Co. of America, Blue Cross and Blue Shield of Minnesota, Forethought Life Insurance Co., Farmers New World Life Insurance Co., United Insurance Co. of America, the Guardian Life Insurance Co. of America, Jackson National Life Insurance Co., Hartford Life Insurance Co., Pacific Life Insurance Co., United of Omaha Life Insurance Co., Minnesota Life Insurance Co., the Mutual Savings Life Insurance Co., Reserve National Insurance Co., UnitedHealthcare Insurance Co., Catholic United Financial, Western Fraternal Life Association, Woodmen of the World Life Insurance Co. and Southern Farm Bureau Life Insurance Co.
Kirby, based in Houston, operates inland tank barges and towing vessels to transport petrochemical products.
| Issuer: | Kirby Corp.
|
| Issue: | Fixed-rate senior notes
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| Amount: | $500 million
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| Call: | Make-whole at Treasuries plus 50 bps
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| Pricing date: | Dec. 13
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| Settlement date: | February 2013
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| Distribution: | Private placement
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| Purchasers: | New York Life Insurance and Annuity Corp., ING USA Annuity and Life Insurance Co., Reliastar Life Insurance Co., Transamerica Financial Life Insurance Co., the Northwestern Mutual Life Insurance Co., State Farm Life Insurance Co., the Prudential Insurance Co. of America, Blue Cross and Blue Shield of Minnesota, Forethought Life Insurance Co., Farmers New World Life Insurance Co., United Insurance Co. of America, the Guardian Life Insurance Co. of America, Jackson National Life Insurance Co., Hartford Life Insurance Co., Pacific Life Insurance Co., United of Omaha Life Insurance Co., Minnesota Life Insurance Co., the Mutual Savings Life Insurance Co., Reserve National Insurance Co., UnitedHealthcare Insurance Co., Catholic United Financial, Western Fraternal Life Association., Woodmen of the World Life Insurance Co., Southern Farm Bureau Life Insurance Co.
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|
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| Notes due 2020
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| Amount: | $150 million
|
| Coupon: | 2.72%
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| Maturity: | Feb. 27, 2020
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| Notes due 2023
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| Amount: | $350 million
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| Coupon: | 3.29%
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| Maturity: | Feb. 27, 2023
|
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