XML 36 R19.htm IDEA: XBRL DOCUMENT
v3.5.0.2

Long-Term Debt and Bank Facility Borrowings | 12 Months Ended
--- | ---
Sep. 30, 2016
Long-Term Debt and Bank Facility Borrowings | 11) Long-Term Debt and Bank Facility Borrowings The Partnership’s debt is as follows
|  | September 30, |
(in thousands): |  | 2016 |  |  | 2015 |
|  | Carrying |  |  |  |  |  | Carrying |  |  |  |
|  | Amount |  |  | Fair Value |  |  | Amount |  |  | Fair Value |
Revolving Credit Facility Borrowings |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Senior Secured Term Loan |  |  | 92,500 |  |  |  | 92,500 |  |  |  | 100,000 |  |  |  | 100,000 |
Total debt |  | $ | 92,500 |  |  | $ | 92,500 |  |  | $ | 100,000 |  |  | $ | 100,000 |
Total short-term portion of debt |  | $ | 16,200 |  |  | $ | 16,200 |  |  | $ | 10,000 |  |  | $ | 10,000 |
Total long-term portion of debt |  | $ | 76,300 |  |  | $ | 76,300 |  |  | $ | 90,000 |  |  | $ | 90,000 |
The face amount of the Partnership’s variable rate long-term debt approximates fair value. On July 30, 2015, the Partnership entered into a third amended and restated asset based credit agreement with a bank syndicate comprised of thirteen participants, which enables the Partnership to borrow up to $300 million ($450 million during the heating season of December through April of each year) on a revolving credit facility for working capital purposes (subject to certain borrowing base limitations and coverage ratios), provides for a $100 million five-year senior secured term loan (“Term Loan”), allows for the issuance of up to $100 million in letters of credit, and has a maturity date of July 30, 2020. The Partnership can increase the revolving credit facility size by $100 million without the consent of the bank group. However, the bank group is not obligated to fund the $100 million increase. If the bank group elects not to fund the increase, the Partnership can add additional lenders to the group, with the consent of the Agent, which shall not be unreasonably withheld. Obligations under the third amended and restated credit facility are guaranteed by the Partnership and its subsidiaries and are secured by liens on substantially all of the Partnership’s assets including accounts receivable, inventory, general intangibles, real property, fixtures and equipment. All amounts outstanding under the third amended and restated revolving credit facility become due and payable on the facility termination date of July 30, 2020. The Term Loan is repayable in quarterly payments of $2.5 million, plus an annual payment equal to 25% of the annual Excess Cash Flow as defined in the agreement (an amount not to exceed $15 million annually), less certain voluntary prepayments made during the year, with final payment at maturity. As of September 30, 2016 the Partnership expects to make approximately $6.2 million of additional term loan repayments due to Excess Cash Flow for the fiscal year ended September 30, 2016. The amount is included in the caption current maturities of long-term debt on our consolidated balance sheet. The interest rate on the third amended and restated revolving credit facility and the term loan is based on a margin over LIBOR or a base rate. At September 30, 2016, the effective interest rate on the term loan was approximately 3.62%. The Commitment Fee on the unused portion of the revolving credit facility is 0.30% from December through April, and 0.20% from May through November. The third amended and restated credit agreement requires the Partnership to meet certain financial covenants, including a fixed charge coverage ratio (as defined in the credit agreement) of not less than 1.1 as long as the Term Loan is outstanding or revolving credit facility availability is less than 12.5% of the facility size. In addition, as long as the Term Loan is outstanding, a senior secured leverage ratio at any time cannot be more than 3.0 as calculated during the quarters ending June or September, and at any time no more than 4.5 as calculated during the quarters ending December or March. Certain restrictions are also imposed by the agreement, including restrictions on the Partnership’s ability to incur additional indebtedness, to pay distributions to unitholders, to pay certain inter-company dividends or distributions, make investments, grant liens, sell assets, make acquisitions and engage in certain other activities. At September 30, 2016, $92.5 million of the term loan was outstanding, no amount was outstanding under the revolving credit facility, $0.3 million of hedge positions were secured under the credit agreement, and $50.6 million of letters of credit were issued and outstanding. At September 30, 2015, $100 million of the term loan was outstanding, no amount was outstanding under the revolving credit facility, $15.3 million of hedge positions were secured, and $54.8 million of letters of credit were issued and outstanding. At September 30, 2016, availability was $163.4 million, the Partnership was in compliance with the fixed charge coverage ratio and the senior secured leverage ratio, and the restricted net assets totaled approximately $291 million. Restricted net assets are assets in the Partnership’s subsidiaries the distribution or transfer of which to Star Gas Partners, L.P. are subject to limitations under its credit agreement. At September 30, 2015, availability was $176 million, the Partnership was in compliance with the fixed charge coverage ratio and the senior secured leverage ratio, and the restricted net assets totaled approximately $280 million. As of September 30, 2016, the maturities (including working capital borrowings and expected repayments due to Excess Cash Flow) during fiscal years ending September 30, are set forth in the following table (in thousands):
2017 |  | $ | 16,200 |
2018 |  | $ | 10,000 |
2019 |  | $ | 10,000 |
2020 |  | $ | 56,300 |
Thereafter |  | $ | — |

X
- 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
Name: | us-gaap_DebtDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration