Debt (Tables)

9 Months Ended

Sep. 30, 2022

At September 30, 2022 and December 31, 2021, long-term debt consisted of the following:


	September 30, 2022		December 31, 2021
$275,000 Credit facility at variable interest rate (5.85%1 weighted average at September 30, 2022), due August 2023 secured by substantially all of the Partnership’s assets, including, without limitation, inventory, accounts receivable, vessels, equipment, fixed assets and the interests in the Partnership’s operating subsidiaries, net of unamortized debt issuance costs of $1,457 and $2,613, respectively 2	$	200,543	$	156,887
$53,750 Senior notes due February 2024, 10.0% interest, net of unamortized debt issuance costs of $1,574 and $2,433, respectively, secured 2,3	52,176		51,317
$291,381 Senior notes due February 2025, 11.5% interest, net of unamortized debt issuance costs of $990 and $1,303, respectively, secured 2,3,4	290,390		290,667
Total	543,109		498,871
Less: current portion	(200,543)		—
Total long-term debt, net of current portion	$	342,566	$	498,871

Current installments of finance lease obligations	$	108	$	280
Finance lease obligations	—		9
Total finance lease obligations	$	108	$	289

1 Interest rate fluctuates based on LIBOR (set on the date of each advance) or the base prime rate plus an applicable margin. The margin is set every three months. All amounts outstanding at December 31, 2021 and September 30, 2022 were at LIBOR plus an applicable margin with LIBOR having a floor of 1.00% per annum. The applicable margin for revolving loans that are LIBOR loans currently ranges from 2.75% to 4.00%, and the applicable margin for revolving loans that are base prime rate loans currently ranges from 1.75% to 3.00%. The applicable margin for LIBOR borrowings at September 30, 2022 is 3.00%. The applicable margin for LIBOR borrowings effective November 2, 2022 is 3.25%. The credit facility contains various covenants that limit the Partnership’s ability to make distributions; make certain investments and acquisitions; enter into certain agreements; incur indebtedness; sell assets; and make certain amendments to the Partnership's omnibus agreement with Martin Resource Management Corporation (the "Omnibus Agreement"). The credit facility was amended on July 16, 2021 to, among other things, reduce the commitments thereunder from $300,000 to $275,000.

2 The Partnership was in compliance with all debt covenants as of September 30, 2022 and December 31, 2021, respectively.

3 The indentures for each of the outstanding series of senior notes restrict the Partnership’s ability to sell assets; pay distributions or repurchase units or redeem or repurchase subordinated debt; make investments; incur or guarantee additional indebtedness or issue preferred units; and consolidate, merge or transfer all or substantially all of its assets.

4 On April 14, 2022, the Partnership completed the payment of an aggregate principal amount of approximately $589, or approximately 0.20%, of its 11.50% Senior Secured Second Lien Notes due 2025 (the “2025 Notes”), pursuant to its cash tender offer (the “Excess Cash Flow Offer”) to purchase up to $9,305 aggregate principal amount of the 2025 Notes. The purchase price for the tendered 2025 Notes was 100% of the aggregate principal amount thereof, plus accrued and unpaid interest to, but not including, the purchase date.

As of September 30, 2022, the Partnership’s credit facility is due within twelve months and outstanding borrowings have therefore been presented as a current liability on the Consolidated and Condensed Balance Sheets at September 30, 2022. If the Partnership is unable to extend the maturity date of the credit facility by August 31, 2023, the Partnership's ability to meet its obligations would be adversely affected. Failure to extend the maturity date would result in the potential foreclosure on the collateral securing such debt, and could cause a cross-default under other agreements, which could also result in the acceleration of those obligations by the counterparties to those agreements. Pending the successful extension of the maturity date of the credit facility, the conditions described above have raised substantial doubt about the Partnership’s ability to continue as a going concern. The Partnership’s management is in the process of refinancing the credit facility and presently believes the measures being taken will enable the Partnership to successfully extend the maturity date of the credit facility, although no assurance can be given.