UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
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Date of Report (Date of earliest event reported):
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October 7, 2005 |
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MARITRANS INC.
(Exact name of registrant specified in its charter)
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| Delaware
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1-9063
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51-0343903 |
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| (State or other jurisdiction of incorporation)
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(Commission File Number)
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(I.R.S. Employer Identification No.) |
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Two Harbour Place, Knights Run Avenue, Suite 1200,
Tampa, Florida
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33602 |
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| (Address of principal executive offices)
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(Zip Code) |
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Registrant’s telephone, including area code:
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(813) 209-0600 |
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Not applicable.
(Former name and former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the Registrant under any of the following provisions (see General
Instruction A.2. below):
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Item 1.01 Entry into a Material Definitive Agreement.
On October 7, 2005, Maritrans Inc. (the “Company”) entered into the First Amendment (the
“Amendment”) to the existing Credit and Security Agreement dated as of November 20, 2001, by and
among Mellon Bank, N.A. and a syndicate of financial institutions (the “Credit Facility”). The
Amendment is led by Citizens Bank of Pennsylvania, as successor to Mellon Bank, N.A., and a
syndicate consisting of Bank of America, N.A., as successor to Fleet National Bank, Hibernia
National Bank and SunTrust Bank.
The Amendment extends the maturity date of the Credit Facility from January 31, 2007 to
October 7, 2010, and increases the amount of the Credit Facility from $40 million to $60 million,
with an option to increase the amount to $120 million, in increments of $10 million, if certain
conditions are satisfied. Under the Amendment, the margins added to LIBOR (as defined in the
Credit Facility), to determine the rate at which interest accrues on outstanding borrowings, which
are based on the ratio of the Company’s Funded Debt to EBITDA (as defined in the Credit Facility),
were amended to provide more favorable interest rates to the Company. In addition, the Amendment
removed the restrictive covenants requiring the Company to maintain certain ratios as to interest
coverage and total liabilities to tangible net worth, as well as removing the limitation on the
Company’s ability to make capital expenditures and the limitation on advances in excess of 60% of
the appraised value of the Company’s pledged vessels. Finally, the Amendment increased the
permitted acquisitions limitation from $5 million to $30 million, and made other nonmaterial
changes to the Credit Facility.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Sheet Balance
Sheet Arrangement of a Registrant
See our discussion under Item 1.01 with respect to our entry into an Amendment to the Credit
Facility, which is incorporated hereunder by reference.