By William Gullotti
Buffalo, N.Y., Feb. 8 – Kirby Corp. announced it will issue a total of $300 million of fixed-rate senior notes in two parts, according to an 8-K filed with the Securities and Exchange Commission.
The note purchase agreement, dated Feb. 3 with BofA Securities, Inc. acting as agent, is comprised of
• $60 million of 3.46% senior notes, series A, due Jan. 19, 2033; and
• $240 million of 3.51% senior notes, series B, due Jan. 19, 2033.
The series A notes are scheduled to be issued Oct. 20, with the scheduled issue of the series B notes delayed until Jan. 19, 2023.
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. Partial prepayments are subject to a minimum of 5% of the aggregate principal amount of the notes outstanding at the time of prepayment.
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.
Proceeds from the notes will be used with operational cash to repay the 3.29% senior notes due Feb. 27, 2023.
Kirby, based in Houston, operates inland tank barges and towing vessels to transport petrochemical products.
| Issuer: | Kirby Corp.
|
| Issue: | Fixed-rate senior notes
|
| Amount: | $300 million
|
| Maturity: | Jan. 19, 2033
|
| Pricing date: | Feb. 3
|
| Distribution: | Private placement
|
|
|
| Series A notes
|
| Amount: | $60 million
|
| Coupon: | 3.46%
|
| Price: | Par
|
| Yield: | 3.46%
|
| Issue date: | Oct. 20
|
|
|
| Series B notes
|
| Amount: | $240 million
|
| Coupon: | 3.51%
|
| Price: | Par
|
| Yield: | 3.51%
|
| Issue date: | Jan. 19, 2023
|
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