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Debt
6 Months Ended
Jun. 30, 2021
Debt Disclosure [Abstract]  
Debt

Note 7. DEBT

Our balances for long-term debt and finance lease obligations were as follows (in thousands):

 

 

 

June 30,

 

 

December 31,

 

 

 

2021

 

 

2020

 

CAPL Credit Facility

 

$

533,781

 

 

$

513,180

 

Finance lease obligations

 

 

18,394

 

 

 

20,007

 

Total debt and finance lease obligations

 

 

552,175

 

 

 

533,187

 

Current portion

 

 

2,679

 

 

 

2,631

 

Noncurrent portion

 

 

549,496

 

 

 

530,556

 

Deferred financing costs, net

 

 

2,737

 

 

 

3,257

 

Noncurrent portion, net of deferred financing costs

 

$

546,759

 

 

$

527,299

 

 

Our CAPL Credit Facility is secured by substantially all of our assets, including our equity interest in CAPL JKM Holdings LLC, other than the assets of unrestricted subsidiaries designated as such under the CAPL Credit Facility. CAPL JKM Holdings LLC and its subsidiaries are unrestricted subsidiaries under the CAPL Credit Facility. Letters of credit outstanding at June 30, 2021 and December 31, 2020 totaled $4.0 million. The amount of availability under the CAPL Credit Facility at June 30, 2021, after taking into consideration debt covenant restrictions, was $135.0 million.

Financial Covenants and Interest Rate

 

The CAPL Credit Facility contains certain financial covenants. 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 CAPL Credit Facility). Upon the occurrence of a qualified note offering (as defined in the CAPL Credit Facility), 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 CAPL Credit Facility) 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 CAPL Credit Facility) of at least 2.50 to 1.00. As of June 30, 2021, we were in a specified acquisition period and so our maximum consolidated leverage ratio was 5.50 to 1.00. We were in compliance with these financial covenants.

 

Our borrowings under the CAPL Credit Facility had a weighted-average interest rate of 2.1% as of June 30, 2021 (LIBOR plus an applicable margin, which was 2.0% as of June 30, 2021).

See Note 8 for information related to our interest rate swap contracts.

 

See Note 2 for information regarding our new JKM Credit Facility and amendment to our CAPL Credit Facility, both dated in July 2021.