Long-Term Debt and Bank Facility Borrowings (Tables)

12 Months Ended

Sep. 30, 2015

Partnership's Debt

The Partnership’s debt is as follows	September 30,
(in thousands):	2015				2014
	Carrying Amount		Fair Value (a)		Carrying Amount		Fair Value
Revolving Credit Facility Borrowings (b)	$	—	$	—	$	—	$	—
Senior Secured Term Loan (b)		100,000		100,000		—		—
8.875% Senior Notes (c)		—		—		124,572		130,313
Total debt	$	100,000	$	100,000	$	124,572	$	130,313
Total short-term portion of debt (b)	$	10,000	$	10,000	$	—	$	—
Total long-term portion of debt	$	90,000	$	90,000	$	124,572	$	130,313

(a) The face amount of the Partnership’s variable rate long-term debt approximates fair value.

(b) On July 30, 2015, the Partnership entered into a third amended and restated asset based credit agreement with a bank syndicate comprised of thirteen participants, which enables the Partnership to borrow up to $300 million ($450 million during the heating season of December through April of each year) on a revolving credit facility for working capital purposes (subject to certain borrowing base limitations and coverage ratios), provides for a $100 million five-year senior secured term loan (the “$100 million Term Loan”), allows for the issuance of up to $100 million in letters of credit, and has a maturity date of July 30, 2020.

The Partnership can increase the revolving credit facility size by $100 million without the consent of the bank group. However, the bank group is not obligated to fund the $100 million increase. If the bank group elects not to fund the increase, the Partnership can add additional lenders to the group, with the consent of the Agent, which shall not be unreasonably withheld. Obligations under the third amended and restated credit facility are guaranteed by the Partnership and its subsidiaries and are secured by liens on substantially all of the Partnership’s assets including accounts receivable, inventory, general intangibles, real property, fixtures and equipment.

All amounts outstanding under the third amended and restated revolving credit facility become due and payable on the facility termination date of July 30, 2020. The $100 million Term Loan is repayable in quarterly payments of $2.5 million, plus an annual payment equal to 25% of the annual Excess Cash Flow as defined in the agreement (an amount not to exceed $15 million annually), less certain voluntary prepayments made during the year, with final payment at maturity.

The interest rate on the third amended and restated revolving credit facility and the term loan is based on a margin over LIBOR or a base rate. At September 30, 2015, the effective interest rate on the term loan was approximately 3.57%

The Commitment Fee on the unused portion of the revolving credit facility is 0.30% from December through April, and 0.20% from May through November.

The third amended and restated credit agreement requires the Partnership to meet certain financial covenants, including a fixed charge coverage ratio (as defined in the credit agreement) of not less than 1.1 as long as the $100 million Term Loan is outstanding or revolving credit facility availability is less than 12.5% of the facility size. In addition, as long as the $100 million Term Loan is outstanding, a senior secured leverage ratio at any time cannot be more than 3.0 as calculated during the quarters ending June or September, and at any time no more than 4.5 as calculated during the quarters ending December or March.

Certain restrictions are also imposed by the agreement, including restrictions on the Partnership’s ability to incur additional indebtedness, to pay distributions to unitholders, to pay certain inter-company dividends or distributions, make investments, grant liens, sell assets, make acquisitions and engage in certain other activities.

(c) On September 3, 2015, the Partnership and its co-issuer and wholly owned subsidiary SGFC redeemed all of the 8.875% Senior Notes at the then redemption price of 104.438% plus any accrued but unpaid interest. The Partnership recorded a loss of $7.3 million on this transaction, resulting from the $5.5 million redemption price premium, and the related write-offs of $1.5 million in unamortized deferred charges and $0.3 million of unamortized debt discount.

Maturities Including Working Capital Borrowings

As of September 30, 2015, the maturities including working capital borrowings during fiscal years ending September 30, are set forth in the following table (in thousands):

2016	$	10,000
2017	$	10,000
2018	$	10,000
2019	$	10,000
2020	$	60,000
Thereafter	$	—