Kirby enters $750 million five-year replacement revolver, term loan

By Marisa Wong

Los Angeles, July 29 – Kirby Corp. entered into a credit agreement on July 29 with a group of commercial banks that replaces its existing amended and restated credit agreement with a $500 million revolver and a $250 million term loan due July 29, 2027.

Borrowings bear interest at SOFR plus 137.5 basis points. The spread generally varies with Kirby’s credit rating.

The term loan is repayable in quarterly installments beginning Dec. 31, in increasing percentages of the original principal amount, with the remaining unpaid balance of $43.8 million due at maturity assuming no prepayment.

The credit agreement contains covenants including an interest coverage ratio and debt-to-capitalization ratio.

Borrowings may be used for general corporate purposes, including acquisitions.

As of July 29, Kirby had $35 million outstanding under the revolver and $250 million outstanding under the term loan. Proceeds were used to repay $285 million of borrowings outstanding under the previous 2024 credit agreement, which was then terminated.

JPMorgan Chase Bank, NA is administrative agent.

JPMorgan, BofA Securities, Inc., Wells Fargo Securities, LLC and PNC Capital Markets LLC are the joint bookrunners and co-lead arrangers.

Bank of America, NA, Wells Fargo Bank, NA and PNC Bank, NA are the syndication agents.

Truist Bank and U.S. Bank NA are documentation agents.

Based in Houston, Kirby operates inland tank barges and towing vessels to transport petrochemical products.

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