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Debt | 12 Months Ended
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Dec. 31, 2019
Debt Disclosure [Abstract] |
Debt | Note 11. DEBT Our balances for long-term debt and finance lease obligations are as follows (in thousands):
|  | December 31, |
|  | 2019 |  |  | 2018 |
Revolving credit facility |  | $ | 519,000 |  |  | $ | 498,000 |
Finance lease obligations |  |  | 22,630 |  |  |  | 24,927 |
Total debt and finance lease obligations |  |  | 541,630 |  |  |  | 522,927 |
Current portion |  |  | 2,471 |  |  |  | 2,296 |
Noncurrent portion |  |  | 539,159 |  |  |  | 520,631 |
Deferred financing costs, net |  |  | 4,300 |  |  |  | 1,355 |
Noncurrent portion, net of deferred financing costs |  | $ | 534,859 |  |  | $ | 519,276 |
As of December 31, 2019, future principal payments on debt and future minimum rental payments on finance lease obligations were as follows (in thousands):
|  | Debt |  |  | Finance Lease Obligations |  |  | Total |
2020 |  | $ | — |  |  | $ | 3,166 |  |  | $ | 3,166 |
2021 |  |  | — |  |  |  | 3,266 |  |  |  | 3,266 |
2022 |  |  | — |  |  |  | 3,367 |  |  |  | 3,367 |
2023 |  |  | — |  |  |  | 3,469 |  |  |  | 3,469 |
2024 |  |  | 519,000 |  |  |  | 3,573 |  |  |  | 522,573 |
Thereafter |  |  | — |  |  |  | 8,734 |  |  |  | 8,734 |
Total future payments |  |  | 519,000 |  |  |  | 25,575 |  |  |  | 544,575 |
Less interest component |  |  | — |  |  |  | 2,945 |  |  |  | 2,945 |
|  |  | 519,000 |  |  |  | 22,630 |  |  |  | 541,630 |
Current portion |  |  | — |  |  |  | 2,471 |  |  |  | 2,471 |
Long-term portion |  | $ | 519,000 |  |  | $ | 20,159 |  |  | $ | 539,159 |
Our borrowings under the revolving credit facility had a weighted-average interest rate of 3.73% as of December 31, 2019 (LIBOR plus an applicable margin, which was 2.00% as of December 31, 2019). Letters of credit outstanding at December 31, 2019 and 2018 totaled $5.4 million and $5.2 million, respectively. The amount of availability under the credit facility at December 31, 2019, after taking into consideration debt covenant restrictions, was $92.0 million. New Credit Agreement On April 1, 2019, we entered into a credit agreement with the lenders from time to time party thereto and Citizens Bank, N.A., as administrative agent, swing line lender and letter of credit issuer (the “New Credit Agreement”). The New Credit Agreement replaced our previous credit agreement, dated as of March 4, 2014 (as amended, the “Existing Credit Agreement”), and provided the following key benefits:
| • | Increased commitments from $650 million to $750 million with the ability to increase commitments by $300 million, subject to certain conditions;
| • | Provides for the current and future asset exchange transactions with Circle K, subject to certain conditions being satisfied;
| • | Provided for a general reduction in the applicable margin;
| • | Increased the maximum permitted leverage ratio during most periods;
| • | Reduced cost of compliance, including removal of the requirement to mortgage real property; and
| • | Extended the maturity from April 2020 to April 2024.
The New Credit Agreement is a $750 million senior secured revolving credit facility, maturing in April 2024. The facility can be increased from time to time upon our written request, subject to certain conditions, up to an additional $300 million. The aggregate amount of the outstanding loans and letters of credit under the New Credit Agreement cannot exceed the combined revolving commitments then in effect. All obligations under the New Credit Agreement are secured by substantially all of the Partnership’s assets. Borrowings under the credit facility bear interest, at the Partnership’s option, at (1) a rate equal to LIBOR for interest periods of one, two, three or six months (or, if consented to by all lenders, for such other period that is twelve months or a period shorter than one month), plus a margin ranging from 1.50% to 2.50% per annum depending on our consolidated leverage ratio (as defined in the New Credit Agreement) or (2) (a) a base rate equal to the greatest of, (i) the federal funds rate, plus 0.5% per annum, (ii) LIBOR for one month interest periods, plus 1.00% per annum or (iii) the rate of interest established by the agent, from time to time, as its prime rate, plus (b) a margin ranging from 0.50% to 1.50% per annum depending on our consolidated leverage ratio. In addition, we incur a commitment fee based on the unused portion of the credit facility at a rate ranging from 0.25% to 0.45% per annum depending on our consolidated leverage ratio. We also have the right to borrow swingline loans under the New Credit Agreement in an amount up to $35.0 million. Swingline loans will bear interest at the base rate plus the applicable base rate margin. Standby letters of credit are permissible under the New Credit Agreement up to an aggregate amount of $65.0 million. Standby letters of credit are subject to a 0.125% fronting fee and other customary administrative charges. Standby letters of credit will accrue a fee at a rate based on the applicable margin of LIBOR loans. The New Credit Agreement also contains certain financial covenants. For each quarter ending on or after September 30, 2019, we are required to maintain a consolidated leverage ratio for the most recently completed four fiscal quarters of 4.75 to 1.00. Such threshold is increased to 5.50 to 1.00 for the quarter during a specified acquisition period (as defined in the New Credit Agreement). Upon the occurrence of a qualified note offering (as defined in the New Credit Agreement), the consolidated leverage ratio when not in a specified acquisition period is increased to 5.25 to 1.00, while the specified acquisition period threshold remains 5.50 to 1.00. Upon the occurrence of a qualified note offering, we are also required to maintain a consolidated senior secured leverage ratio (as defined in the New Credit Agreement) for the most recently completed four fiscal quarter period of not greater than 3.75 to 1.00. Such threshold is increased to 4.00 to 1.00 for the quarter during a specified acquisition period. We are also required to maintain a consolidated interest coverage ratio (as defined in the New Credit Agreement) of at least 2.50 to 1.00. As of December 31, 2019, we were in compliance with these financial covenants. In addition to rolling the $516.5 million of borrowings under the Existing Credit Agreement into the New Credit Agreement, we also initially drew $4.8 million and used $0.3 million of cash to pay $2.0 million of accrued interest under the Existing Credit Agreement and to pay $3.1 million of fees and expenses in connection with entering into the New Credit Agreement. Future borrowings will be used to provide ongoing working capital. The New Credit Agreement prohibits us from making cash distributions to our unitholders if any event of default occurs or would result from the distribution. We amended the New Credit Agreement on November 19, 2019 to allow for the GP Purchase. Finance Lease Obligations In May 2012, the Predecessor Entity entered into a 15-year master lease agreement with renewal options of up to an additional 20 years with Getty Realty Corporation. Since then, the agreement has been amended from time to time to add or remove retail sites. As of December 31, 2019, we lease 114 sites under this lease with a weighted-average remaining lease term of 7.3 years. We pay fixed rent, which increases 1.5% per year. In addition, the lease requires variable lease payments based on gallons of motor fuel sold. Because the fair value of the land at lease inception was estimated to represent more than 25% of the total fair value of the real property subject to the lease, the land element of the lease was analyzed for operating or capital treatment separately from the rest of the property subject to the lease. The land element of the lease was classified as an operating lease and all of the other property was classified as a capital lease. This assessment was not required to be reassessed upon adoption of ASC 842. As such, future minimum rental payments are included in both the finance lease obligations table above as well as the operating lease table in Note 12. The weighted-average discount rate for this finance lease obligation at December 31, 2019 was 3.5%. Interest on this finance lease obligation amounted to $0.8 million for 2019.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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