Long-Term Debt

3 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

Long-Term Debt

Long-Term Debt

The Partnership has a revolving credit facility among OMP Operating LLC (“OMP Operating”) as borrower, Wells Fargo Bank, N.A., as Administrative Agent (the “Administrative Agent”) and the lenders party thereto (as amended, the “Revolving Credit Facility”), which matures on September 25, 2022. The Revolving Credit Facility is available to fund working capital and to finance acquisitions and other capital expenditures of the Partnership. As of March 31, 2020, the aggregate commitments under the Revolving Credit Facility were $575.0 million.

At March 31, 2020, the Partnership had $487.5 million of borrowings outstanding under the Revolving Credit Facility, at a weighted average interest rate of 2.9%, excluding impacts of an additional interest charge pursuant to the Limited Waiver (defined below), and an outstanding letter of credit of $1.7 million, resulting in unused borrowing capacity of $85.8 million. At December 31, 2019, the Partnership had $458.5 million of borrowings outstanding under the Revolving Credit Facility, at a weighted average interest rate of 3.8%, and an outstanding letter of credit of $1.7 million.

The unused portion of the Revolving Credit Facility is subject to a commitment fee ranging from 0.375% to 0.500%. The fair value of the Revolving Credit Facility approximates book value since borrowings under the Revolving Credit Facility bear interest at rates which are tied to current market rates.

The Partnership was in compliance with the covenants under the Revolving Credit Facility at March 31, 2020, except as follows. As a result of ongoing internal oversight processes, the Partnership identified that a Control Agreement (as defined in the Revolving Credit Facility) had not been executed for a certain bank account (the “JPM Account”) held at JPMorgan Chase Bank, N.A. (“JPMorgan”), who is a lender under the Revolving Credit Facility. The Control Agreement serves to establish a lien in favor of the lenders under the Revolving Credit Facility with respect to the JPM Account. On May 11, 2020, the Partnership executed a Control Agreement with both the Administrative Agent and JPMorgan, thereby completing the documentation required under the Revolving Credit Facility. Despite the Control Agreement’s execution, the failure to have had it in place before the JPM Account was initially funded with cash represents a past Event of Default (as defined in the Revolving Credit Facility). On May 15, 2020, the Partnership entered into a limited waiver (the “Limited Waiver”) of this past Event of Default with the Majority Lenders (as defined in the Revolving Credit Facility), which provides forbearance of additional interest owed arising from this past Event of Default until the earlier of (i) November 10, 2020 and (ii) an Event of Default. Pursuant to the Limited Waiver, the Partnership recorded an additional interest charge of $25.9 million in the unaudited condensed consolidated financial statements as of March 31, 2020.