Kirby to draw on revolving credit facility for merger with K-Sea

By Toni Weeks

San Diego, March 14 - Kirby Corp. announced that it plans to use borrowings under its revolving credit facility to finance, in part, its recently announced merger with K-Sea Transportation Partners LP.

According to a filing with the Securities and Exchange Commission, the total value of the transaction is about $600 million, consisting of $335 million for K-Sea's equity and the refinancing of $265 million of K-Sea debt.

In addition to the draw under the revolver, the company said it will also use a combination of available cash, a new bank term loan of up to $540 million and Kirby common stock.

The filing said that the closing of the transaction is expected to occur in June or July, subject to certain conditions.

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

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