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K-Sea Transportation gets new $80 million revolver
By Sara Rosenberg
New York, March 30 - K-Sea Transportation Partners LP's operating subsidiary closed on a new $80 million five-year revolving credit facility, according to an 8-K filed with the Securities and Exchange Commission Wednesday.
KeyBank was the lead bank on the deal.
The revolver contains an accordion feature that allows it to be increased to $100 million at the company's request.
Interest on revolver borrowings and the commitment fee is based on total funded debt to EBITDA. If total funded debt to EBITDA is less than 1.75:1.00 then the rate is Libor plus 100 basis points and the commitment fee is 17.5 bps. If total funded debt to EBITDA is greater than or equal to 1.75:1.00 and less than 2.25:1.00 then the rate is Libor plus 125 bps and the commitment fee is 20 bps. If total funded debt to EBITDA is greater than or equal to 2.25:1.00 and less than 2.75:1.00 then the rate is Libor plus 150 bps and the commitment fee is 22.5 bps. If total funded debt to EBITDA is greater than or equal to 2.75:1.00 and less than 3.25:1.00 then the rate is Libor plus 175 bps and the commitment fee is 25 bps. And, if total funded debt to EBITDA is greater than or equal to 3.25:1.00 then the rate is Libor plus 200 bps and the commitment fee is 37.5 bps, the filing said.
Financial covenants include minimum fixed charge to EBITDA of 2.50 to 1:00, maximum total funded debt to tangible capitalization of 0.60 to 1.00 and maximum total funded debt to EBITDA of 3.75 to 1.00.
Security is first priority interest on some of the operating subsidiary's vessels.
The initial drawdown on the new revolver, totaling $61.7 million, was used to repay outstanding borrowings on the previous facility and some other higher cost variable rate term loans. The new revolver has a lower interest rate, more favorable collateral and more favorable financial covenant requirements than the previous facility.
K-Sea Transportation is a provider of refined petroleum products marine transportation, distribution and logistics services.
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