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Debt and Debt - Affiliate | 12 Months Ended
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Dec. 31, 2015
Debt Disclosure [Abstract] |
Debt and Debt—Affiliate | Debt and Debt—Affiliate As used in this Note 10, references to "NRP LP" refer to Natural Resource Partners L.P. only, and not to NRP (Operating) LLC, or NRP Oil and Gas LLC, wholly owned subsidiaries of NRP LP, or any of Natural Resource Partners L.P.’s subsidiaries. References to "Opco" refer to NRP (Operating) LLC and its subsidiaries. References to NRP Oil and Gas refer to NRP Oil and Gas LLC, a wholly owned subsidiary of NRP LP. NRP Finance Corporation ("NRP Finance") is a wholly owned subsidiary of NRP LP and a co-issuer with NRP LP on the 9.125% senior notes described below. See discussion of Management's Forecast, Strategic Plan and Going Concern Analysis and certain matters involving the Partnership's debt in Note 2. As of December 31, 2015 and 2014, Debt and debt—affiliate consisted of the following (in thousands):
| December 31, 2015 |  | December 31, 2014
NRP LP Debt: |  |  |
$425 million 9.125% senior notes, with semi-annual interest payments in April and October, due October 2018, $300 million issued at 99.007% and $125 million issued at 99.5% | $ | 422,923 |  |  | $ | 422,167 |
Opco Debt: |  |  |
$300 million floating rate revolving credit facility, due October 2017 | 290,000 |  |  | — |
$300 million floating rate revolving credit facility, due August 2016 | — |  |  | 200,000 |
$200 million floating rate term loan, due January 2016 | — |  |  | 75,000 |
4.91% senior notes, with semi-annual interest payments in June and December, with annual principal payments in June, due June 2018 | 13,850 |  |  | 18,467 |
8.38% senior notes, with semi-annual interest payments in March and September, with annual principal payments in March, due March 2019 | 85,714 |  |  | 107,143 |
5.05% senior notes, with semi-annual interest payments in January and July, with annual principal payments in July, due July 2020 | 38,462 |  |  | 46,154 |
5.31% utility local improvement obligation, with annual principal and interest payments in February, due March 2021 | 1,153 |  |  | 1,345 |
5.55% senior notes, with semi-annual interest payments in June and December, with annual principal payments in June, due June 2023 | 21,600 |  |  | 24,300 |
4.73% senior notes, with semi-annual interest payments in June and December, with annual principal payments in December, due December 2023 | 60,000 |  |  | 67,500 |
5.82% senior notes, with semi-annual interest payments in March and September, with annual principal payments in March, due March 2024 | 135,000 |  |  | 150,000 |
8.92% senior notes, with semi-annual interest payments in March and September, with annual principal payments in March, due March 2024 | 40,909 |  |  | 45,455 |
5.03% senior notes, with semi-annual interest payments in June and December, with annual principal payments in December, due December 2026 | 148,077 |  |  | 161,538 |
5.18% senior notes, with semi-annual interest payments in June and December, with annual principal payments in December, due December 2026 | 42,308 |  |  | 46,154 |
NRP Oil and Gas Debt: |  |  |
Reserve-based revolving credit facility due November 2019 | 85,000 |  |  | 110,000 |
Total debt and debt—affiliate | 1,384,996 |  |  | 1,475,223 |
Less: current portion of long-term debt, net | (80,983 | ) |  | (80,983 | )
Total long-term debt and debt—affiliate | $ | 1,304,013 |  |  | $ | 1,394,240 |
NRP LP Debt Senior Notes In September 2013, NRP LP, together with NRP Finance as co-issuer, issued $300.0 million of 9.125% Senior Notes due 2018 at an offering price of 99.007% of par. Net proceeds after expenses from the issuance of the senior notes were approximately $289.0 million. The senior notes call for semi-annual interest payments on April 1 and October 1 of each year, and will mature on October 1, 2018. In October 2014, NRP LP, together with NRP Finance as co-issuer, issued an additional $125.0 million of its 9.125% Senior Notes due 2018 at an offering price of 99.5% of par. The notes constitute the same series of securities as the existing $300.0 million 9.125% senior notes due 2018 issued in September 2013. Net proceeds of $122.6 million from the additional issuance of the Senior Notes were used to fund a portion of the purchase price of NRP’s acquisition of non-operated working interests in oil and gas assets located in the Williston Basin in North Dakota. The notes call for semi-annual interest payments on April 1 and October 1 of each year and will mature on October 1, 2018. NRP and NRP Finance have the option to redeem the NRP Senior Notes, in whole or in part, at any time on or after April 1, 2016, at fixed redemption prices specified in the indenture governing the NRP Senior Notes (the "NRP Senior Notes Indenture"). Before April 1, 2016, NRP and NRP Finance may redeem all or part of the NRP Senior Notes at a redemption price equal to the sum of the principal plus a make whole premium at the redemption date, plus accrued and unpaid interest, if any, to the redemption date. Furthermore, before April 1, 2016, NRP and NRP Finance may on any one or more occasions redeem up to 35% of the aggregate principal amount of the notes with the net proceeds of certain public or private equity offerings at a redemption price of 109.125% of the principal amount of notes, plus any accrued and unpaid interest, if any, to the date of redemption, if at least 65% of the aggregate principal amount of the notes issued under the indenture remains outstanding immediately after such redemption and the redemption occurs within 180 days of the closing date of such equity offering. In the event of a change of control, as defined in the indenture, the holders of the notes may require NRP and NRP Finance to purchase their notes at a purchase price equal to 101% of the principal amount of the notes, plus accrued and unpaid interest, if any. The indenture governing the $425.0 million of senior notes issued by NRP LP (the "Indenture") contains covenants that, among other things, limit the ability of NRP LP and certain of its subsidiaries to incur or guarantee additional indebtedness. Under the Indenture, NRP LP and certain of its subsidiaries generally are not permitted to incur additional indebtedness unless, on a consolidated basis, the fixed charge coverage ratio (as defined in the indenture) is at least 2.0 to 1.0 for the four preceding full fiscal quarters. The ability of NRP LP and certain of its subsidiaries to incur additional indebtedness is further limited in the event the amount of indebtedness of NRP LP and certain of its subsidiaries that is senior to NRP LP’s unsecured indebtedness exceeds certain thresholds. As of December 31, 2015 and December 31, 2014, NRP was in compliance with the terms of the financial covenants contained in its debt agreements. Opco Debt All of Opco’s debt is guaranteed by its wholly owned subsidiaries and is secured by certain of the assets of Opco and its wholly owned subsidiaries other than NRP Trona LLC, as further described below. As of December 31, 2015 and December 31, 2014, Opco was in compliance with the terms of the financial covenants contained in its debt agreements. Revolving Credit Facility In June 2015, Opco entered into a $300.0 million Third Amended and Restated Credit Agreement (the "A&R Revolving Credit Facility"), which amended and restated Opco’s $300.0 million Second Amended and Restated Credit Agreement due August 2016. The A&R Revolving Credit Facility matures on October 2, 2017, is guaranteed by all of Opco’s wholly owned subsidiaries, and is secured by liens on certain of the assets of Opco and its subsidiaries, as further described below. Initially, indebtedness under the A&R Revolving Credit Facility bears interest, at Opco's option, at a rate of either:
• | the higher of (i) the prime rate as announced by the agent bank; (ii) the federal funds rate plus 0.50%; or (iii) LIBOR plus 1%, in each case plus 2.375%; or
• | a rate equal to LIBOR plus 3.375%
Borrowings under the A&R Revolving Credit Facility will bear interest at such rate until the time that Opco delivers quarterly financial statements for the year ended December 31, 2015 to the lenders thereunder. Following such delivery date, indebtedness under the A&R Revolving Credit Facility will bear interest, at Opco's option, at a rate of either:
• | the higher of (i) the prime rate as announced by the agent bank; (ii) the federal funds rate plus 0.50%; or (iii) LIBOR plus 1%, in each case plus an applicable margin ranging from 1.50% to 2.50% or
• | a rate equal to LIBOR plus an applicable margin ranging from 2.50% to 3.50%
The weighted average interest rates for the borrowings outstanding under the A&R Revolving Credit Facility for the twelve months ended December 31, 2015 and year ended December 31, 2014 were 2.91% and 1.98%, respectively. Opco will incur a commitment fee on the unused portion of the revolving credit facility at a rate of 0.50% per annum. Opco may prepay all amounts outstanding under the A&R Revolving Credit Facility at any time without penalty. The A&R Revolving Credit Facility contains financial covenants requiring Opco to maintain:
• | a leverage ratio of consolidated indebtedness to consolidated EBITDDA (as defined in the A&R Revolving Credit Facility) not to exceed:
• | 4.0 to 1.0 for each fiscal quarter ending on or before March 31, 2016;
• | 3.75 to 1.0 for each subsequent fiscal quarter ending on or before March 31, 2017; and
• | 3.5 to 1.0 for each fiscal quarter ending on or after June 30, 2017; and
• | a ratio of consolidated EBITDDA to consolidated fixed charges (consisting of consolidated interest expense and consolidated lease expense) of not less than 3.5 to 1.0.
The A&R Revolving Credit Facility contains certain additional customary negative covenants that, among other items, restrict Opco’s ability to incur additional debt, grant liens on its assets, make investments, sell assets and engage in business combinations. Included in the investment covenant are restrictions upon Opco’s ability to acquire assets where Opco does not maintain certain levels of liquidity. The A&R Revolving Credit Facility also contains customary events of default, including cross-defaults under Opco’s senior notes (as described below). The A&R Revolving Credit Facility is collateralized and secured by liens on certain of Opco’s assets with a carrying value of $709.9 million classified as Land, Mineral rights and Plant and equipment on the Partnership’s Consolidated Balance Sheet as of December 31, 2015. The collateral includes (1) the equity interests in all of Opco’s wholly owned subsidiaries, other than NRP Trona LLC (which owns a 49% non-controlling equity interest in Ciner Wyoming), (2) the personal property and fixtures owned by Opco’s wholly owned subsidiaries, other than NRP Trona LLC, (3) Opco’s material coal royalty revenue producing properties, (4) real property associated with certain of VantaCore’s construction aggregates mining operations, and (5) certain of Opco’s coal-related infrastructure assets. Term Loan During 2013, Opco entered into a $200.0 million Term Loan facility (the "Term Loan") with a maturity date of January 23, 2016. The weighted average interest rates for the debt outstanding under the term loan for the twelve months ended December 31, 2015 and 2014 were 2.19% and 2.22% respectively. Opco repaid $101.0 million in principal under the Term Loan during the third quarter of 2013, and repaid an additional $24.0 million during the fourth quarter of 2014. In September 2015, Opco repaid the remaining $75.0 million on the term loan using borrowings under the A&R Revolving Credit Facility. Senior Notes Opco made principal payments of $80.8 million on its senior notes during the year ended December 31, 2015. The Note Purchase Agreements relating to Opco’s senior notes contain covenants requiring Opco to: •Maintain a ratio of consolidated indebtedness to consolidated EBITDDA (as defined in the note purchase agreement) of no more than 4.0 to 1.0 for the four most recent quarters; •not permit debt secured by certain liens and debt of subsidiaries to exceed 10% of consolidated net tangible assets (as defined in the note purchase agreement); and •maintain the ratio of consolidated EBITDDA (as defined in the note purchase agreement) to consolidated fixed charges (consisting of consolidated interest expense and consolidated operating lease expense) at not less than 3.5 to 1.0. The 8.38% and 8.92% senior notes also provide that in the event that Opco’s leverage ratio of consolidated indebtedness to consolidated EBITDDA (as defined in the note purchase agreement) exceeds 3.75 to 1.00 at the end of any fiscal quarter, then in addition to all other interest accruing on these notes, additional interest in the amount of 2.00% per annum shall accrue on the notes for the two succeeding quarters and for as long thereafter as the leverage ratio remains above 3.75 to 1.00. In connection with the entry into the A&R Revolving Credit Facility in June 2015, Opco entered into the Third Amendment to the Note Purchase Agreements (the "NPA Amendment") that provides for the security of the senior notes by the same collateral package pledged by Opco and its subsidiaries to secure the A&R Revolving Credit Facility, as described above. In addition, the NPA Amendment includes a covenant that provides that, in the event Opco or any of its subsidiaries is subject to any additional or more restrictive covenants under the agreements governing its material indebtedness (including the A&R Revolving Credit Facility, and all renewals, amendments or restatements thereof), such covenants shall be deemed to be incorporated by reference in the senior notes and the holders of the senior notes shall receive the benefit of such additional or more restrictive covenants to the same extent as the lenders under such material indebtedness agreement. NRP Oil and Gas Debt Revolving Credit Facility In August 2013, NRP Oil and Gas entered into a 5-year, $100.0 million senior secured, reserve-based revolving credit facility in order to fund capital expenditure requirements related to the development of the oil and gas assets in which it owns non-operated working interests. In connection with the closing of the Sanish Field acquisition in November 2014, the credit facility was amended to increase its size to $500.0 million with an initial borrowing base of $137.0 million, and the maturity date thereof was extended to November 2019. The maximum amount available under the credit facility is subject to semi-annual redeterminations of the borrowing base in May and November of each year, based on the value of the proved oil and natural gas reserves of NRP Oil and Gas, in accordance with the lenders’ customary procedures and practices. NRP Oil and Gas and the lenders each have a right to one additional redetermination each year. In April 2015, the lenders completed their semi-annual redetermination of the borrowing base under the NRP Oil and Gas revolving credit facility and the $137.0 million borrowing base under that facility was redetermined to $105.0 million. In October 2015, the lenders under the NRP Oil and Gas revolving credit facility completed their semi-annual redetermination of the borrowing base under the NRP Oil and Gas revolving credit facility and the $105.0 million borrowing base was redetermined to $88.0 million. The Partnership repaid $25.0 million of outstanding borrowings under the NRP Oil and Gas revolving credit facility during the year ended December 31, 2015. At December 31, 2015 and 2014, there was $85.0 million and $110.0 million respectively, outstanding under the NRP Oil and Gas revolving credit facility. The credit facility is secured by a first priority lien and security interest in substantially all of the assets of NRP Oil and Gas. NRP Oil and Gas is the sole obligor under its revolving credit facility, and neither the Partnership nor any of its other subsidiaries is a guarantor of such facility. The weighted average interest rate for the debt outstanding under the credit facility for the twelve months ended December 31, 2015 and, 2014 was 2.50% and 2.37%, respectively. Indebtedness under the NRP Oil and Gas credit facility bears interest, at the option of NRP Oil and Gas, at either:
• | the higher of (i) the prime rate as announced by the agent bank; (ii) the federal funds rate plus 0.50%; or (iii) LIBOR plus 1%, in each case plus an applicable margin ranging from 0.50% to 1.50%; or
• | a rate equal to LIBOR, plus an applicable margin ranging from 1.50% to 2.50%.
NRP Oil and Gas incurs a commitment fee on the unused portion of the borrowing base under the credit facility at a rate ranging from 0.375% to 0.50% per annum. The NRP Oil and Gas credit facility contains certain covenants, which, among other things, require the maintenance of:
• | a total leverage ratio (defined as the ratio of the total debt of NRP Oil and Gas to its EBITDAX) of not more than 3.5 to 1.0; and
• | a minimum current ratio of 1.0 to 1.0.
As of December 31, 2015 and 2014, NRP Oil and Gas was in compliance with the terms of the financial covenants contained in its credit facility. Consolidated Principal Payments The consolidated principal payments due are set forth below (in thousands):
| NRP LP |  |  |  | Opco | NRP Oil and Gas |  |
| Senior Notes |  |  |  | Senior Notes |  | Credit Facility |  | Credit Facility |  | Total
2016 | $ | — |  |  |  |  | $ | 80,983 |  |  | $ | — |  |  | $ | — |  |  | $ | 80,983 |
2017 | — |  |  |  |  | 80,983 |  |  | 290,000 |  |  | — |  |  | 370,983 |
2018 | 425,000 |  |  | (1 | ) |  | 80,983 |  |  | — |  |  | — |  |  | 505,983 |
2019 | — |  |  |  |  | 76,366 |  |  | — |  |  | 85,000 |  |  | 161,366 |
2020 | — |  |  |  |  | 54,938 |  |  | — |  |  | — |  |  | 54,938 |
Thereafter | — |  |  |  |  | 212,820 |  |  | — |  |  | — |  |  | 212,820 |
| $ | 425,000 |  |  |  |  |  | $ | 587,073 |  |  | $ | 290,000 |  |  | $ | 85,000 |  |  | $ | 1,387,073 |
(1) | The 9.125% senior notes due 2018 were issued at a discount and as of December 31, 2015 were carried at $422.9 million.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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