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Long-Term Debt and Bank Facility Borrowings | 9 Months Ended
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Jun. 30, 2018
Debt Disclosure [Abstract] |
Long-Term Debt and Bank Facility Borrowings | 9) Long-Term Debt and Bank Facility Borrowings The Company’s debt is as follows (in thousands):
|  | June 30, |  |  | September 30, |
|  | 2018 |  |  | 2017 |
|  | Carrying Amount |  |  | Fair Value (a) |  |  | Carrying Amount |  |  | Fair Value (a) |
Revolving Credit Facility Borrowings |  | $ | 41,500 |  |  | $ | 41,500 |  |  | $ | - |  |  | $ | - |
Senior Secured Term Loan (b) |  |  | 68,412 |  |  |  | 68,800 |  |  |  | 75,717 |  |  |  | 76,300 |
Total debt |  | $ | 109,912 |  |  | $ | 110,300 |  |  | $ | 75,717 |  |  | $ | 76,300 |
Total long-term portion of Term Loan (b) |  | $ | 60,912 |  |  | $ | 61,300 |  |  | $ | 65,717 |  |  | $ | 66,300 |
Total long-term portion of Revolving Credit Facility Borrowings (c) |  | $ | 33,700 |  |  | $ | 33,700 |  |  | $ | - |  |  | $ | - |
(a) | The face amount of the Company’s variable rate long-term debt approximates fair value.
(b) | Carrying amounts are net of unamortized debt issuance costs of $0.4 million as of June 30, 2018 and $0.6 million as of September 30, 2017.
(c) | On July 2, 2018, the Company refinanced its five-year term loan and the revolving credit facility with the execution of the fourth amended and restated revolving credit facility agreement. (See Note 14—Subsequent Events). As of June 30, 2018, the Company has classified $33.7 million of its revolving credit facility borrowings as long term debt and repaid it on July 3, 2018 using $33.7 million of proceeds provided by the fourth amended and restated revolving credit facility agreement.
On July 30, 2015, the Company entered into a third amended and restated asset-based credit agreement with a bank syndicate comprised of thirteen participants, which enables the Company 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 (the “Term Loan”), allows for the issuance of up to $100 million in letters of credit (changed to $25 million under the new credit agreement effective July 2, 2018), and has a maturity date of July 30, 2020. The Company can increase the revolving credit facility size by $100 million (increased to $200 million under the new credit agreement effective July 2, 2018) 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 Company can add additional lenders to the group, with the consent of the Agent (as defined in the credit agreement), which shall not be unreasonably withheld. Obligations under the third amended and restated credit facility are guaranteed by the Company and its subsidiaries and are secured by liens on substantially all of the Company’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. 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 June 30, 2018, the effective interest rate on the Term Loan was approximately 4.8% and the effective interest rate on revolving credit facility borrowings was approximately 3.8%. 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 Company 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 Company’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 June 30, 2018, $68.8 million of the Term Loan was outstanding, $41.5 million was outstanding under the revolving credit facility, no hedge positions were secured under the credit agreement, and $7.1 million of letters of credit were issued and outstanding. At September 30, 2017, $76.3 million of the Term Loan was outstanding, no amount was outstanding under the revolving credit facility, $0.1 million of hedge positions were secured under the credit agreement, and $48.0 million of letters of credit were issued and outstanding. At June 30, 2018, availability was $180.6 million, and the Company was in compliance with the fixed charge coverage ratio and the senior secured leverage ratio. At September 30, 2017, availability was $166.1 million, and the Company was in compliance with the fixed charge coverage ratio and the senior secured leverage ratio.

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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://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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