K-Sea amends revolver, changing size, maturity, pricing and covenants

By Sara Rosenberg

New York, Jan. 22 - K-Sea Transportation Partners LP amended its revolving credit facility, reducing the size to $175 million from $200 million, revising the maturity to July 1, 2012 from Aug. 14, 2014, raising pricing and modifying covenants, according to an 8-K filed with the Securities and Exchange Commission on Friday.

Pricing on the revolver can now range from Libor plus 275 basis points to 475 bps with a commitment fee of 37.5 bps to 62.5 bps, based on total debt to EBITDA.

As for covenants, the fixed-charge coverage ratio was reduced to 1.50 from 1.85, effective March 31, and the total debt to EBITDA ratio was increased to 4.50 to 1.00 from 3.75 to 1.00, effective immediately, to 5.00 to 1.00 at March 31 and stepping back down to 4.50 to 1.00 at Sept. 30, 2010 and thereafter.

Also, the minimum asset coverage to total debt covenant now requires 1.333 times orderly liquidation value, as compared to the previous requirement of 1.25 times fair market value.

In addition, the amendment eliminated the $50 million accordion feature and allows the payment of quarterly distributions up to a maximum of $0.45 per unit, so long minimum liquidity is $17.5 million.

The amendment was completed on Dec. 23.

KeyBank is the administrative agent on the deal.

The company also amended a secured term loan to conform to the terms of the revolver, and amended another term loan facility and an operating lease agreement.

K-Sea is an East Brunswick, N.J.-based tank barge operator.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.