| 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.
|