Kirby issues remaining $225 million of seven-, 10-year notes under $500 million agreement

By Lisa Kerner

Charlotte, N.C., March 6 - Kirby Corp. announced it issued the remaining $67.5 million of the 2.72% senior notes due 2020 and $157.5 million of 3.29% senior notes due 2023 on Feb. 27 as part of its planned $500 million issuance of seven- and 10-year notes, according to an 8-K filing with the Securities and Exchange Commission.

Proceeds were used primarily to refinance $200 million of floating-rate senior notes due Feb. 28, 2013.

In December, Kirby announced it 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.

As previously reported, the notes have a make-whole call at Treasuries plus 50 basis points.

Interest on the notes is payable semiannually, and no principal payments are required until maturity, according to a prior filing.

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
Amount:	$500 million
Call option:	Make-whole at Treasuries plus 50 bps
Distribution:	Private placement
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.
Notes due 2020
Amount:	$150 million
Maturity:	Feb. 27, 2020
Coupon:	2.72%
Settlement dates:	Dec. 13 for $82.5 million and Feb. 27 for $67.5 million
Notes due 2023
Amount:	$350 million
Maturity:	Feb. 27, 2023
Coupon:	3.29%
Settlement dates:	Dec. 13 for $192.5 million and Feb. 27 for $157.5 million

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