[GRAPHIC OMITTED]
KIRBY CORPORATION
CONTACT: STEVE HOLCOMB
713-435-1135
FOR IMMEDIATE RELEASE
- ---------------------
KIRBY CORPORATION ANNOUNCES PLACEMENT OF
$200 MILLION SENIOR NOTES
- $200 MILLION OF SENIOR NOTES AT LIBOR PLUS 0.5% DUE 2013
- PROCEEDS USED TO REPAY $200 MILLION OF SENIOR NOTES AT LIBOR PLUS
1.2%
- PRIVATE PLACEMENT WILL SAVE $1.4 MILLION OF INTEREST EXPENSE, OR $.03
PER SHARE, ANNUALLY. KIRBY WILL EXPENSE $1.1 MILLION OF
UNAMORTIZED FINANCING COSTS ASSOCIATED WITH REFINANCED NOTES.
- 2005 SECOND QUARTER AND FULL YEAR EARNINGS PER SHARE GUIDANCE
UNCHANGED
HOUSTON, TEXAS (MAY 31, 2005) - Kirby Corporation ("Kirby") (NYSE:KEX) today
announced the private placement of $200 million of senior notes ("2005 Senior
Notes") with the assistance of Banc of America Securities LLC. The unsecured
floating rate 2005 Senior Notes have an interest rate equal to the London
Interbank Offered Rate ("LIBOR") plus 0.5%. No principal payments are required
until maturity in February 2013. The 2005 Senior Notes are callable, at Kirby's
option, with a 2% prepayment premium during the first year, 1% during the second
year and at par thereafter.
Proceeds of the 2005 Senior Notes were used to repay Kirby's $200 million of
senior notes ("2003 Senior Notes") due February 2013. The 2003 Senior Notes had
an interest rate equal to LIBOR plus 1.2%. With the early extinguishment of the
2003 Senior Notes, Kirby will expense in the 2005 second quarter approximately
$1.1 million, or $.03 per share after taxes, of unamortized financing costs
associated with the 2003 Senior Notes.
Joe Pyne, Kirby's President and Chief Executive Officer, commented, "The new
$200 million private placement loan will replace Kirby's 2003 Senior Notes and
will result in $1.4 million of annual interest savings at the current level
outstanding. Kirby also has a $150 million bank revolving line of credit which
is substantially unused at this time." Mr. Pyne further commented, "Kirby's
earnings per share guidance ranges for the second quarter of 2005 and for the
full year are unchanged at $.65 to $.70 and $2.45 to $2.55, respectively."
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Kirby Corporation, based in Houston, Texas, operates inland tank barges and
towing vessels, transporting petrochemicals, black oil products, refined
petroleum products and agricultural chemicals throughout the United States
inland waterway system. Through the diesel engine services segment, Kirby
provides after-market service for large medium-speed and high-speed diesel
engines and reduction gears used in marine, power generation and railroad
applications.
Statements contained in this press release with respect to the future are
forward-looking statements. These statements reflect management's reasonable
judgment with respect to future events. Forward-looking statements involve
risks and uncertainties. Actual results could differ materially from those
anticipated as a result of various factors, including cyclical or other
downturns in demand, significant pricing competition, unanticipated additions to
industry capacity, changes in the Jones Act or in U.S. maritime policy and
practice, fuel costs, interest rates, weather conditions, and timing, magnitude
and the number of acquisitions made by Kirby. A list of additional risk factors
can be found in Kirby's annual report on Form 10-K for the year ended December
31, 2004, filed with the Securities and Exchange Commission.
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