Has anyone else heard of Kirby looking at aquiring Penn?
Kirby has been seen at Penn yard and Kirby has also increased the amount of a loan in Nov by 15 million.
Survy
http://www.heraldonline.com/2012/11/27/4443655/kirby-corporation-signs-agreement.html
HOUSTON, NOV. 27, 2012 — /PRNewswire/ – Kirby Corporation (“Kirby”) (NYSE: KEX) announced today that it has entered into an agreement to acquire Penn Maritime Inc. and Maritime Investments LLC (collectively, “Penn” or “Penn Maritime”), an operator of tank barges and tugboats participating in the coastal transportation of primarily black oil products in the United States. The total value of the transaction is approximately $295 million (before post-closing adjustments and transaction fees) and will consist of cash, Kirby common stock and the retirement of Penn’s debt.
The transaction will be financed through a combination of borrowing under Kirby’s revolving credit facility, issuance of new unsecured fixed rate senior notes, and the issuance of Kirby common stock. The closing of the transaction is expected to occur in mid-to-late December 2012, subject to certain conditions.
Under the terms of the agreement, the total value of the transaction is approximately $295 million (before post-closing adjustments and transaction fees), consisting of $180 million for all of the voting and nonvoting equity interests in Penn Maritime Inc. and Maritime Investments LLC and approximately $115 million for the retirement of Penn’s debt. The $180 million consideration paid to Penn equity holders will include a combination of cash of approximately $152 million and 500,000 shares of Kirby common stock.
The new unsecured fixed rate senior notes are scheduled to close in mid-December and provide for $500 million in fixed rate debt with $150 million at a 7-year maturity and $350 million at a 10-year maturity. The pricing, inclusive of the amortization of up-front fees, is 2.79% for the 7-year and 3.34% for the 10-year maturities. Kirby anticipates drawing up to $300 million for the closing of Penn prior to year end, with the balance drawn in February 2013 to replace the $200 million of senior notes due February 27, 2013.
Penn operates a fleet of 18 heated, double-hulled tank barges, with a capacity of 1.9 million barrels, and 16 tugboats along the East Coast and Gulf Coast of the United States. Penn’s tank barge fleet has an average age of approximately 13 years with a product mix that consists primarily of refinery feedstocks, asphalt and crude oil. Penn’s customers include major oil companies and refiners, nearly all of whom are current Kirby customers for inland tank barge services.
Joe Pyne, Kirby’s Chairman and Chief Executive Officer, commented, “We are pleased to announce our agreement with Penn Maritime. Penn is a well-respected U.S. Jones Act coastal tank barge operator with a well-maintained fleet, and earns the majority of its revenue from term contracts with blue chip domestic and international oil and refining customers. Penn’s fleet will extend our coastal product capabilities, particularly transporting asphalt, which we expect to benefit from the need to repair and upgrade aging highway infrastructure throughout the United States. Penn also has vessels operating in the Gulf Coast crude oil trade which is benefitting from the production and transport of shale-based crude, particularly out of the Eagle Ford shale formation.”
Mr. Pyne further commented, “We expect this transaction to close in mid-to-late December of this year. In connection with the acquisition, we expect to incur some one-time transaction fees that will impact our earnings per share in the fourth quarter of 2012. For 2013, we expect Penn to be accretive to our earnings per share, inclusive of added interest costs and dilution from stock issuance, in the range of $0.12 to $0.18. The accretion range is dependent upon integration, synergies, purchase price allocation and market conditions.”
Kirby has scheduled a conference call for 7:30 a.m. central time on Wednesday, November 28, 2012, to discuss the Penn Maritime acquisition, as well as the outlook for the fourth quarter. The conference call number is 800-446-2782 for domestic callers and 847-413-3235 for international callers. The leader’s name is Steve Holcomb. The confirmation number is 33839230. An audio playback will be available at 10:00 a.m. central time on Wednesday, November 28, through 11:59 p.m. central time on Friday, December 28, 2012, by dialing 888-843-7419 for domestic and 630-652-3042 for international callers. Kirby’s webcast and playback of the conference call will be accessible on its website at http://www.kirbycorp.com.
Kirby Corporation, based in Houston, Texas, is the nation’s largest domestic tank barge operator, transporting bulk liquid products throughout the Mississippi River System, the Gulf Intracoastal Waterway, coastwise along all three United States coasts and in Alaska and Hawaii. Kirby transports petrochemicals, black oil products, refined petroleum products and agricultural chemicals by tank barge. Through the diesel engine services segment, Kirby provides after-market service for medium-speed and high-speed diesel engines and reduction gears used in marine and power generation applications. Kirby also distributes and services high-speed diesel engines, transmissions, pumps, compression products and manufactures and remanufactures oilfield service equipment, including pressure pumping units, for land-based pressure pumping and oilfield service markets.
Statements contained in this press release with respect to the future are forward-looking statements. These statements reflect management’s reasonable judgment with respect to future events. Forward-looking statements involve risks and uncertainties. Actual results could differ materially from those anticipated as a result of various factors, including cyclical or other downturns in demand, significant pricing competition, unanticipated additions to industry capacity, changes in the Jones Act or in U.S. maritime policy and practice, fuel costs, interest rates, weather conditions, and timing, magnitude and number of acquisitions made by Kirby. Forward-looking statements are based on currently available information and Kirby assumes no obligation to update any such statements. A list of additional risk factors can be found in Kirby’s annual report on Form 10-K for the year ended December 31, 2011, filed with the Securities and Exchange Commission.
SOURCE Kirby Corporation
Read more here: http://www.heraldonline.com/2012/11/27/4443655/kirby-corporation-signs-agreement.html#storylink=cpy
http://www.kxxv.com/story/20200643/kirby-corporation-signs-agreement-to-acquire-penn-maritime
Wonder if the Penn Maritime employees will have to join the new RTBU union?
Theyll prob stick with SIU
[QUOTE=NYBoatman;89305]Theyll prob stick with SIU[/QUOTE]
I think Penn still has a couple of boats under 333 contract too.
Either way, the takeover’s (KSea, Allied) by Kirby do not leave me with the warm & fuzzies.
Where will it end?
They have the nothern fleet 333. 5 tugs 6 barges i think… It was a nice place to work… Prob not anymore…
Whos next?? And when do the anti-trust issues begin?
From what i hear, pay and benefit wise, kirby makes mac sound good!! You’ll all be down to there pathetic pay-scale soon!
As long as those guys stick together. They should be ok.
Penn is the last company I thought they would buy
The pay in the Northeast with companies that are non-union are just as good as the union companies and they have good benefits too. The unions have seen their better days… KSea’s boats were falling apart and Kirby fixed them up. I find it interesting that the companies that are being bought are the union companies and not the non-union ones. Connection? Maybe. Maybe the unions are making the profit margins suffer just like Hostess suffered to the point of just saying the hell with it and closing up shop. Look at the Teachers Union in the news now that has cosmetic surgery written into their contract but the graduation rate is at 50% and they need more teachers but can’t afford to hire more because of the ridiculous union demands. Unions had a time where they meant something but now they are more corrupt than the companies and just try to bully them into getting what they want whether it makes good business sense or not. I bet Kirby will make those companies they bought profitable again which will save jobs in the long run.
Penn has been profitable the past few years. Its not a unions fault that a company goes under.
Our beloved Local 333 is nothing but extortion. Their the most useless bunch I’ve ever dealt with.
[QUOTE=NYBoatman;89520]Penn has been profitable the past few years. Its not a unions fault that a company goes under.[/QUOTE]
LOL… Tell Hostess that.
The union wages that Penn was paying it’s tug/barge crews was on the same line as other non-union companies in the Northeast. Compare tug personnel salaries to non-union OSV companies in the Gulf and you’ll find that the tugs are WAY behind. For whatever reason Penn sold, It isn’t because of union wages.
You may be correct But statistics will always argue this point kinda reminds me of the tax payers bailing out GM and Chrysler as a union member you become pro union naturally, we’ve all seen where unions provide for allot of deadwood by protection of its members I’ve been in Both union & non union arenas I guess you have to ask yourself what a union provided costs are to and employer some say they are a necessary evil with the present economic climate they may be.
Was Allied or Sea boats union… dont think so. Kirby is turning whats left of K-Sea into horror show. Tug and barge guys are running away from there like rats off a sinking ship. Why did almost all of K-Seas upper office management bail, hmmm. Unions had nothing to do with Penn selling out, the family members and owners that control penn wanted out, and kirby offered them enough money. Anyone who has half a brain will be gone,
Kirby is taking over. Im guessing there betting on a big turn around in the economy. And when that happens theyll be holding all the chips.
[QUOTE=BargeMonkey;89555]Was Allied or Sea boats union[/QUOTE]
Allied was under SIU contract.
There was talk on the boats last year that Mr. Waterman would sell soon and retire. He found a buyer willing to pay the right price, nothing more to it than that.
The money and benefits weren’t that great that it would have impacted the bottom line. Most of the time we were on contract so Penn was getting bad even while we were sitting.