July 9, 2010
K-Sea reaches agreements with lenders
K-Sea Transportation Partners L.P. (NYSE:KSP) stock rose after it reported that its K-Sea Operating Partnership L.P. subsidiary had reached agreements with lenders granting it a temporary waiver of compliance with financial covenants through August 31, 2010 on both its revolving credit agreement and a $57.6 million term loan.
President and CEO Timothy J. Casey said that EBITDA in the partnership's June 2010 quarter "will exceed the inordinately low number we reported in our March 2010 quarter. In addition to the normal seasonal rebound, owing to the oil spill in the Gulf of Mexico, we believe that approximately two dozen coastwise tank barges, as well as a number of inland tank barges and ocean-going tankers have been chartered. While this employment has to be viewed as temporary, it is likely that many units will be employed until the spill is cleaned up. Accordingly, we expect the market to tighten during this process and there is some evidence this is already happening. K-Sea has chartered out five single-hull barges and three double-hull barges along with eight tugboats to assist with the clean-up effort."