Key completes $47 million deal for K-Sea
KeyBank (NYSE: KEY) Commercial Banking, the commercial banking division of Cleveland-based KeyCorp, announced today it served as administrative agent on a $47 million financing package for K-Sea Transportation Partners L.P. (NYSE: KSP), which provides refined petroleum products marine transportation, distribution and logistics services in the northeastern United States and in the Gulf of Mexico.
K-Sea, which posted $88 million in revenues for the year ended September 30, 2003, and employs approximately 400 employees, intends to use the proceeds to fund future growth.
KeyBank Commercial Banking, which provides loans, equipment leasing, cash management and depository products to companies with revenues between $10-$250 million, provided a $15 million, 3-year acquisition line of credit, a $7 million stand-by letter of credit facility, and a $5 million, 3-year working capital line of credit for the Staten Island-based company which operates 36 vessels and 19 tugboats. CIT provided the remaining capital.
"Key worked hard to know our business and what our capital needs were," said Tim Casey, president and CEO of K-Sea. "Their range of products was attractive, but it was their ability to meet our commercial and investment banking needs that provided the true value for us."
The deal follows K-Sea's January 14, 2004 initial public offering that raised more than $97 million. That transaction was led by Lehman Brothers and was co-managed by KeyBanc Capital Markets, the investment banking arm of Key, which focuses on providing capital solutions to industry sectors such as consumer, energy, financial, healthcare, manufacturing and technology.