6.LONG-TERM DEBT

Long-term debt consists of the following (in thousands):

	June 30, 2015			December 31, 2014

ARLP Revolving Credit facility	$	393,000		$	140,000
ARLP Series A senior notes	-			205,000
ARLP Series B senior notes	145,000			145,000
ARLP Term loan	218,750			231,250
ARLP Securitization facility	100,000			100,000

	856,750			821,250
Less current maturities	(68,750		)	(230,000		)

Total long-term debt	$	788,000		$	591,250

The Intermediate Partnership has $145.0 million in ARLP Series B senior notes (“ARLP Series B Senior Notes”), a $700.0 million revolving credit facility (“ARLP Revolving Credit Facility”) and a $218.8 million term loan (“ARLP Term Loan” and collectively, with the ARLP Series B Senior Notes and the ARLP Revolving Credit Facility, the “ARLP Debt Arrangements”), which are guaranteed by all of the material direct and indirect subsidiaries of the Intermediate Partnership. The Intermediate Partnership also has a $100.0 million accounts receivable securitization facility (“ARLP Securitization Facility”). At June 30, 2015, current maturities include a portion of the ARLP Term Loan. On June 26, 2015 the outstanding balance of the ARLP Series A senior notes totaling $205.0 million was paid. The ARLP Debt Arrangements contain various covenants affecting the Intermediate Partnership and its subsidiaries restricting, among other things, the amount of distributions by the Intermediate Partnership, incurrence of additional indebtedness and liens, sale of assets, investments, mergers and consolidations and transactions with affiliates, in each case subject to various exceptions. The ARLP Debt Arrangements also require the Intermediate Partnership to remain in control of a certain amount of mineable coal reserves relative to its annual production. In addition, the ARLP Debt Arrangements require the Intermediate Partnership to maintain (a) debt to cash flow ratio of not more than 3.0 to 1.0 and (b) cash flow to interest expense ratio of not less than 3.0 to 1.0, in each case, during the four most recently ended fiscal quarters. The debt to cash flow ratio and cash flow to interest expense ratio were 1.09 to 1.0 and 23.9 to 1.0, respectively, for the trailing twelve months ended June 30, 2015. The ARLP Partnership was in compliance with the covenants of the ARLP Debt Arrangements as of June 30, 2015.

At June 30, 2015, the ARLP Partnership had borrowings of $393.0 million and $5.4 million of letters of credit outstanding with $301.6 million available for borrowing under the ARLP Revolving Credit Facility. The ARLP Partnership utilizes the ARLP Revolving Credit Facility, as appropriate, for working capital requirements, capital expenditures and investments in affiliates, scheduled debt payments and distribution payments. The ARLP Partnership incurs an annual commitment fee of 0.25% on the undrawn portion of the ARLP Revolving Credit Facility.

On December 5, 2014, certain direct and indirect wholly owned subsidiaries of the Intermediate Partnership entered into the ARLP Securitization Facility providing additional liquidity and funding. Under the ARLP Securitization Facility, certain subsidiaries sell trade receivables on an ongoing basis to the Intermediate Partnership, which then sells the trade receivables to AROP Funding, LLC (“AROP Funding”), a wholly owned bankruptcy-remote special purpose subsidiary of the Intermediate Partnership, which in turn borrows on a revolving basis up to $100.0 million secured by the trade receivables. After the sale, Alliance Coal, as servicer of the assets, collects the receivables on behalf of AROP Funding. The ARLP Securitization Facility bears interest based on a Eurodollar Rate. The ARLP Securitization Facility has an initial term of 364 days; however, the ARLP Partnership has the contractual ability and the intent to extend the term for an additional 364 days. At June 30, 2015, the ARLP Partnership had $100.0 million outstanding under the ARLP Securitization Facility. Debt issuance costs were immaterial for this transaction.