K-Sea gets $220 million amended and restated revolver

By Sara Rosenberg

New York, Aug. 20 - K-Sea Operating Partnership LP closed on a $220 million amended and restated revolving credit facility, according to an 8-K filed with the Securities and Exchange Commission Monday.

KeyBank is the administrative agent on the deal that was completed on Aug. 14, LaSalle Bank and Citibank are co-syndication agents, and Citizens Bank of Pennsylvania and HSBC Bank are co-documentation agents.

The facility consists of a $175 million tranche A revolver due Aug. 14, 2014 and a $45 million 364-day tranche B revolver.

Pricing on the revolver can range from Libor plus 70 to 150 basis points, depending on total funded debt to EBITDA.

There is a $75 million accordion feature.

Covenants include EBITDA to fixed charges of at least 1.85 to 1.00, maximum first-lien funded debt to EBITDA that opens at 4.25 to 1.00 and then steps down to 4.00 to 1.00, and total funded debt to EBITDA that opens at 4.75 to 1.00 and then steps down to 4.00 to 1.00.

As of Aug. 15, there was $166.4 million drawn under the tranche A revolver and the tranche B revolver was drawn in full.

The company also closed on a $60 million bridge loan with KeyBank due Nov. 12, 2007 that priced at Libor plus 150 bps.

Proceeds from the financings were used to help fund the acquisition of Smith Maritime, Ltd. of Honolulu, Hawaii, and Sirius Maritime, LLC of Seattle, Washington.

K-Sea is an East Brunswick, N.J.-based provider of refined petroleum products marine transportation, and distribution and logistics services.

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