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6. DEBT
 6 Months Ended
Jun. 30, 2015
Debt Disclosure [Abstract]  
6. DEBT

Long-term borrowings are summarized as follows (in thousands):

 

   June 30, 2015   December 31, 2014 
Kinergy operating line of credit  $8,556   $17,530 
Plant Owners’ third-party term debt   17,003    17,003 
    25,559    34,533 
Less short-term portion   –    – 
Long-term debt  $25,559   $34,533 

 

Kinergy Operating Line of Credit – As of June 30, 2015, Kinergy had an outstanding balance of $8,556,000 and an available borrowing base under the credit facility of $30,000,000.

 

On July 1, 2015, Kinergy amended its line of credit to reflect the following changes:

 

·Extended the term and maturity date of the credit facility from December 31, 2016 to December 31, 2020;
·Increased the maximum credit under the credit facility from $30,000,000 to $75,000,000, with an “accordion” feature to further increase the maximum credit under the credit facility to up to $100,000,000 in minimum increments of $5,000,000 each, upon Kinergy’s request, but subject to the consent of the agent and the lenders in their sole discretion.
·Increased the inventory loan limit under the credit facility from $12,500,000 to $40,000,000 and increased the letter of credit limit under the credit facility from $5,000,000 to $20,000,000;
·Reduced the applicable margin to 1.75% to 2.75% depending on the quarterly average amounts available for borrowing and reduced the unused line fee under the credit facility to an annual rate equal to 0.25% to 0.375% depending on the average daily principal balance during the immediately preceding month; and
·Deleted the financial covenant concerning Kinergy’s earnings before interest, taxes, depreciation and amortization (“EBITDA”) but retained financial covenants concerning its fixed-charge coverage ratios.

 

Plant Owners’ Term Debt and Operating Lines of Credit – As of June 30, 2015, the Plant Owners’ term debt had an outstanding balance of $17,003,000. As of June 30, 2015, the Plant Owners had no outstanding balances on their revolving credit facilities, with an aggregate of $19,473,000 of borrowing availability.