K-Sea Transportation Partners L.P. (KSP) announced that K-Sea Operating Partnership L.P., a subsidiary of the company, has entered into an amendment to its revolving credit agreement and modified or obtained consents under other debt obligations and operating leases in a manner consistent with the amendment. The amendment, among other things, reduced the lenders' commitments from $200 million to $175 million.
The amendment also eliminated the feature of the agreement whereby the borrower could request an increase in the total commitments by up to $50 million; increased the interest rate margins by 205 to 275 basis points tied to certain financial ratios; and changed the maturity of the facility to July 1, 2012 from August 14, 2014.
The amendment allows K-Sea Transportation Partners L.P. to pay quarterly distributions up to a maximum of $0.45 per unit, so long as it maintains a minimum liquidity of $17.5 million.
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