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Note 9 - Debt, Net
 9 Months Ended
Sep. 30, 2023
Notes to Financial Statements  
Debt Disclosure [Text Block]

9.    Debt, Net

 

The Partnership's debt consists of the following:

 

  

September 30,

  

December 31,

 

(In thousands)

 

2023

  

2022

 

Opco Credit Facility

 $128,034  $70,000 

Opco Senior Notes

        

5.55% with semi-annual interest payments in June and December, with annual principal payments in June, due June 2023

 $—  $2,366 

4.73% with semi-annual interest payments in June and December, with annual principal payments in December, due December 2023

  6,004   6,004 

5.82% with semi-annual interest payments in March and September, with annual principal payments in March, due March 2024

  12,684   25,368 

8.92% with semi-annual interest payments in March and September, with annual principal payments in March, due March 2024

  4,011   8,023 

5.03% with semi-annual interest payments in June and December, with annual principal payments in December, due December 2026

  45,683   45,683 

5.18% with semi-annual interest payments in June and December, with annual principal payments in December, due December 2026

  11,643   11,643 

Total Opco Senior Notes

 $80,025  $99,087 

Total debt at face value

 $208,059  $169,087 

Net unamortized debt issuance costs

  (544)  (806)

Total debt, net

 $207,515  $168,281 

Less: current portion of long-term debt

  (36,780)  (39,076)

Total long-term debt, net

 $170,735  $129,205 

 

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 BRP LLC and NRP Trona LLC. As of September 30, 2023 and December 31, 2022, Opco was in compliance with the terms of the financial covenants contained in its debt agreements.

 

Opco Credit Facility

 

In May 2023, the Partnership entered into the Sixth Amendment (the "Sixth Amendment) to the Opco Credit Facility (the "Opco Credit Facility"). The Sixth Amendment maintained the term of the Opco Credit Facility until August 2027. Lender commitments under the Opco Credit Facility increased from $130.0 million to $155.0 million, with the ability to expand such commitments to $200.0 million with the addition of future commitments. The Sixth Amendment also includes modifications to Opco’s ability to declare and make certain restricted payments. The Opco Credit Facility contains financial covenants requiring Opco to maintain:

 

•

A leverage ratio of consolidated indebtedness to EBITDDA (in each case as defined in the Opco Credit Facility) not to exceed 3.0x; provided, and

 

•

an interest coverage ratio of consolidated EBITDDA to the sum of consolidated interest expense and consolidated lease expense (in each case as defined in the Opco Credit Facility) of not less than 3.5 to 1.0.

 

As of December 31, 2022, the Partnership had $70.0 million in borrowings outstanding under the Opco Credit Facility. During the nine months ended September 30, 2023, the Partnership borrowed $215.0 million and repaid $157.0 million, resulting in $128.0 million in borrowings outstanding under the Opco Credit Facility as of September 30, 2023. The weighted average interest rate for the borrowings outstanding under the Opco Credit Facility for the three and nine months ended September 30, 2023 was 8.85% and 8.61%, respectively. During the three and nine months ended September 30, 2022, the Partnership did not have any borrowings outstanding under the Opco Credit Facility. The Partnership had $27.0 million and $60.0 million of available borrowing capacity as of September 30, 2023 and December 31, 2022, respectively.

 

The Opco Credit Facility is collateralized and secured by liens on certain of Opco’s assets with carrying values of $321.6 million and $326.4 million classified as mineral rights, net and other long-term assets, net and $27.0 million and $28.9 million classified as long-term contract receivable, net on the Partnership’s Consolidated Balance Sheets as of September 30, 2023 and December 31, 2022, respectively.

 

Opco Senior Notes   

 

Opco has issued several series of private placement senior notes (the "Opco Senior Notes") with various interest rates and principal due dates. As of September 30, 2023 and December 31, 2022, the Opco Senior Notes had cumulative principal balances of $80.0 million and $99.1 million, respectively. Opco made mandatory principal payments of $19.1 million during the nine months ended September 30, 2023 and 2022.

 

The 8.92% Opco Senior Notes also provides that in the event that Opco’s leverage ratio of consolidated indebtedness to consolidated EBITDDA (as defined in the Note Purchase Agreements) 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. Opco has not exceeded the 3.75 to 1.00 ratio at the end of any fiscal quarter through September 30, 2023.