K-Sea Cancels Plans for GP IPO

Last week, K-Sea Transportation Partners (‘K-Sea”) announced the withdrawal of its registration statement for the proposed initial public offering of K-Sea GP Holdings LP due to the current state of the financial markets. The registration statement had been filed on March 5th. As Tim Casey, president and CEO of K-Sea noted, “The possible general partner IPO would have no impact on our results of operations or financial condition, and its withdrawal also has no impact on us.

The IPO of the general partner is a bit of financial legerdemain which some of the pipeline companies have done in the past. The GP’s sole asset is a 2% interest in the limited partnership as well as control. The attraction of the GP is the incentive distribution rights (“IDRs”)

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