United Maritime rating unchanged by planned unit sale
Standard & Poor's Ratings Services said today that its ratings and CreditWatch listing of Tampa, Fla.-based shipping company United Maritime Group LLC (B/Watch Dev/--) are unchanged at this time by the company's plan to sell another of its subsidiaries. United Maritime announced today that it entered into a definitive agreement to sell U.S. United Bulk Terminal LLC (UBT), a wholly owned subsidiary that operates its bulk terminal services business, to Bulk Handling USA Inc., an affiliate of Oiltanking Holding Americas Inc. for $215 million.
The ratings on United Maritime Group LLC remain on CreditWatch with developing implications, where we had placed them on April 20, 2012, after the company announced that it had entered into a definitive agreement to sell United Barge Line LLC (UBL), a wholly owned subsidiary that operates its inland barge business, to Ingram Barge Co. for $222 million. The company expects to close on both transactions in the second quarter of 2012.
UBL is the most profitable unit of the company. In 2011, UBL generated $146 million in revenues and $9.4 million in operating income. UTB, the second-most profitable segment of the company, generated $57.4 million in revenues and $5.9 million in operating income last year. In comparison, United Maritime reported $326 million in consolidated revenues and $3.3 million operating income.
In resolving the CreditWatch listing, we will assess the outcome of potential sales of the inland barge and the bulk terminal businesses and the effects they could have on the company's business profile. We believe the remaining entity will be much smaller, primarily focused on the ocean services business.
We will also assess how United Maritime uses proceeds from the sales, whether or not the company pays down debt, and how the sales affect the company's financial profile, financial policies, and operating prospects.