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Note 9 - Debt, Net
 3 Months Ended
Mar. 31, 2025
Notes to Financial Statements  
Debt Disclosure [Text Block]

9.    Debt, Net 

 

The Partnership's debt consists of the following:

 

  

March 31,

  

December 31,

 

(In thousands)

 

2025

  

2024

 

Opco Credit Facility

 $110,384  $113,684 

Opco Senior Notes

        

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

 $22,841  $22,841 

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

  5,822   5,822 

Total Opco Senior Notes

 $28,663  $28,663 

Total debt at face value

 $139,047  $142,347 

Net unamortized debt issuance costs

  (243)  (279)

Total debt, net

 $138,804  $142,068 

Less: current portion of long-term debt

  (14,210)  (14,192)

Total long-term debt, net

 $124,594  $127,876 

 

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 March 31, 2025 and December 31, 2024, 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. In  February 2024, the Partnership exercised its option under the Opco Credit Facility to increase the total aggregate commitment under the Opco Credit Facility twice, initially by $30.0 million from $155.0 million to $185.0 million and subsequently by $15.0 million from $185.0 million to $200.0 million. These increases in the total aggregate commitment were made pursuant to an accordion feature of the Opco Credit Facility. In connection with the initial increase, a new lender joined the lending group with a commitment of $30.0 million. In  October 2024, NRP entered into the Seventh Amendment to the Opco Credit Facility which extended the maturity from  August 2027 to  October 2029. The Seventh Amendment also removed reference to the preferred units and warrants, which are no longer outstanding, and 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. As of March 31, 2025, this ratio was 0.6x; 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 March 31, 2025, this ratio was 13.6x.

 

As of December 31, 2024, the Partnership had $113.7 million in borrowings outstanding under the Opco Credit Facility and $86.3 million of available borrowing capacity. During the three months ended March 31, 2025, the Partnership borrowed $33.7 million and repaid $37.0 million, resulting in $110.4 million in borrowings outstanding under the Opco Credit Facility and $89.6 million of available borrowing capacity as of March 31, 2025. During the three months ended March 31, 2024, the Partnership borrowed $89.4 million and repaid $39.0 million on the Opco Credit Facility. The weighted average interest rate for the borrowings outstanding under the Opco Credit Facility for the three months ended March 31, 2025 and 2024 was 7.93% and 8.94%, respectively.

 

The Opco Credit Facility is collateralized and secured by liens on certain of Opco’s assets with carrying values of $299.4 million and $302.8 million classified as mineral rights, net and other long-term assets, net and $22.7 million and $23.5 million classified as long-term contract receivable, net on the Partnership’s Consolidated Balance Sheets as of March 31, 2025 and December 31, 2024, respectively.

 

Opco Senior Notes   

 

Opco issued several series of private placement senior notes (the "Opco Senior Notes") with various interest rates and principal due dates. As of March 31, 2025, the 5.03% and 5.18% Opco Senior Notes remain outstanding. These Opco Senior Notes have principal due annually in December and interest due semi-annually in June and December. As of both  March 31, 2025 and December 31, 2024, the Opco Senior Notes had cumulative principal balances of $28.7 million. Opco made mandatory principal payments of $0.0 million and $16.7 during the three months ended March 31, 2025 and 2024, respectively. These Opco Senior Notes will be fully repaid in December 2026.