K-Sea Transportation Partners L.P. (KSP) Wobbles after Amendment to Credit Agreement

Posted by on Jul 12, 2010 | No comment

Shares of K-Sea Transportation Partners L.P. (NYSE: KSP) lost 3.53% in today’s mid-morning session, trading at $5.74, slightly retracting from last week’s nearly 20% gain.

The huge activity and the price surge in the small-cap stock came after K-Sea Transportation announced on Thursday that K-Sea, its wholly-owned subsidiary, executed an amendment letter to its revolving credit agreement with lenders that will provide for a waiver period. K-Sea also altered a secured term loan facility.

Also on Thursday, Timothy J. Casey, president and CEO of K-Sea, said that the company’s EBITDA for the June quarter will exceed the low figure reported for the March quarter. Casey said that the company has chartered out five single-hull barges and three double hull-barges along with eight tugboats to assist in the clean-up effort in the Gulf of Mexico.

The small cap stock has a 52-week range of $4.07-$24.59. It is currently trading below its 50-day and 200-day moving averages. The small cap stock has support at $4.36 and resistance at $5.53. The consensus recommendation on the small cap stock is Underperform. Currently, it has 3 Hold, 3 Underperform and 2 Sell ratings.

East Brunswick, New Jersey-based K-Sea provides marine transportation, distribution and logistics services.

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