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DEBT
3 Months Ended
Mar. 31, 2019
Debt Disclosure [Abstract]  
DEBT

10. DEBT

Debt consisted of the following:

 

 

 

March 31, 2019

 

 

December 31, 2018

 

 

 

(In thousands)

 

Summit Holdings' variable rate senior secured Revolving Credit Facility

    (5.00% at March 31, 2019 and 5.03% at December 31, 2018)

    due May 2022

 

$

434,000

 

 

$

466,000

 

Summit Holdings' 5.5% senior unsecured notes due August 2022

 

 

300,000

 

 

 

300,000

 

Less unamortized debt issuance costs (1)

 

 

(2,195

)

 

 

(2,362

)

Summit Holdings' 5.75% senior unsecured notes due April 2025

 

 

500,000

 

 

 

500,000

 

Less unamortized debt issuance costs (1)

 

 

(5,659

)

 

 

(5,907

)

Total long-term debt

 

$

1,226,146

 

 

$

1,257,731

 

 

(1) Issuance costs are being amortized over the life of the notes.

Revolving Credit Facility. Summit Holdings has a senior secured revolving credit facility which allows for revolving loans, letters of credit and swing line loans. The Revolving Credit Facility has a $1.25 billion borrowing capacity, matures in May 2022, and includes a $250.0 million accordion feature. Bison Midstream and its subsidiaries, Grand River and its subsidiary, DFW Midstream, Summit Marketing, Summit Permian, Permian Finance, Summit Niobrara, OpCo, Summit Utica, Meadowlark Midstream, Tioga Midstream (Refer to Note 17 for details on the sale of Tioga Midstream), Summit Permian II, Summit Permian Transmission and SMLP fully and unconditionally and jointly and severally guarantee, and pledge substantially all of their assets in support of, the indebtedness outstanding under the Revolving Credit Facility.

Borrowings under the Revolving Credit Facility bear interest, at the election of Summit Holdings, at a rate based on the alternate base rate (as defined in the credit agreement) plus an applicable margin ranging from 0.75% to 1.75% or the adjusted Eurodollar rate (as defined in the credit agreement) plus an applicable margin ranging from 1.75% to 2.75%, with the commitment fee ranging from 0.30% to 0.50% in each case based on our relative leverage at the time of determination. At March 31, 2019, the applicable margin under LIBOR borrowings was 2.50% and the interest rate was 5.00%. The unused portion of the Revolving Credit Facility totaled $816.0 million (subject to a commitment fee of 0.50%).

As of March 31, 2019, we had $7.9 million of debt issuance costs attributable to our Revolving Credit Facility and related amendments which are included in noncurrent assets on the unaudited condensed consolidated balance sheet.

As of and during the three months ended March 31, 2019, we were in compliance with the Revolving Credit Facility's financial covenants. There were no defaults or events of default during the three months ended March 31, 2019.

Senior Notes. In July 2014, Summit Holdings and its 100% owned finance subsidiary, Finance Corp. (together with Summit Holdings, the "Co-Issuers") co-issued $300.0 million of 5.5% senior unsecured notes maturing August 15, 2022 (the "5.5% Senior Notes" and, together with the 5.75% Senior Notes (defined below), the “Senior Notes”).

In February 2017, the Co-Issuers completed a public offering of $500.0 million of 5.75% senior unsecured notes (the "5.75% Senior Notes") as described in the 2018 Annual Report.

Bison Midstream and its subsidiaries, Grand River and its subsidiary, DFW Midstream, Summit Marketing, Summit Permian, Permian Finance, Summit Niobrara, OpCo, Summit Utica, Meadowlark Midstream, Tioga Midstream (Refer to Note 17 for details on the sale of Tioga Midstream), Summit Permian II and Summit Permian Transmission (collectively the "Guarantor Subsidiaries") are 100% owned by a subsidiary of SMLP. The Guarantor Subsidiaries and SMLP fully and unconditionally and jointly and severally guarantee the 5.5% Senior Notes and the 5.75% Senior Notes. There are no significant restrictions on the ability of SMLP or Summit Holdings to obtain funds from its subsidiaries by dividend or loan. Finance Corp. has had no assets or operations since inception in 2013. We have no other independent assets or operations. At no time have the Senior Notes been guaranteed by the Co-Issuers.

As of and during the three months ended March 31, 2019, we were in compliance with the covenants governing our Senior Notes. There were no defaults or events of default during the three months ended March 31, 2019.