Note 9 - Debt, Net

6 Months Ended

Jun. 30, 2024

Notes to Financial Statements

Debt Disclosure [Text Block]

9.    Debt, Net 

The Partnership's debt consists of the following:

	June 30,			December 31,
(In thousands)	2024			2023
Opco Credit Facility	$	167,684		$	95,834
Opco Senior Notes
5.82% with semi-annual interest payments in March and September, with annual principal payments in March, due March 2024	$	—		$	12,685
8.92% with semi-annual interest payments in March and September, with annual principal payments in March, due March 2024		—			4,012
5.03% with semi-annual interest payments in June and December, with annual principal payments in December, due December 2026		34,262			34,262
5.18% with semi-annual interest payments in June and December, with annual principal payments in December, due December 2026		8,732			8,732
Total Opco Senior Notes	$	42,994		$	59,691
Total debt at face value	$	210,678		$	155,525
Net unamortized debt issuance costs		(352	)		(467	)
Total debt, net	$	210,326		$	155,058
Less: current portion of long-term debt		(14,214	)		(30,785	)
Total long-term debt, net	$	196,112		$	124,273

Opco Debt

All of Opco’s debt is guaranteed by its wholly owned subsidiaries and is secured by certain of the assets of Opco and its wholly owned subsidiaries, other than BRP LLC and NRP Trona LLC. As of June 30, 2024 and December 31, 2023, Opco was in compliance with the terms of the financial covenants contained in its debt agreements.

Opco Credit Facility

In May 2023, the Partnership entered into the Sixth Amendment (the "Sixth Amendment) to the Opco Credit Facility (the "Opco Credit Facility"). The Sixth Amendment maintained the term of the Opco Credit Facility until August 2027. Lender commitments under the Opco Credit Facility increased from $130.0 million to $155.0 million, with the ability to expand such commitments to $200.0 million with the addition of future commitments. In  February 2024, the Partnership exercised its option under the Opco Credit Facility to increase the total aggregate commitment under the Opco Credit Facility twice, initially by $30.0 million from $155.0 million to $185.0 million and subsequently by $15.0 million from $185.0 million to $200.0 million. These increases in the total aggregate commitment were made pursuant to an accordion feature of the Opco Credit Facility. In connection with the initial increase, a new lender joined the lending group with a commitment of $30.0 million. The Opco Credit Facility continues to operate under its existing terms and conditions in all material respects. The Sixth Amendment also includes modifications to Opco’s ability to declare and make certain restricted payments. The Opco Credit Facility contains financial covenants requiring Opco to maintain:

• A leverage ratio of consolidated indebtedness to EBITDDA (in each case as defined in the Opco Credit Facility) not to exceed 3.0x As of June 30, 2024, this ratio was 0.7x; and

• an interest coverage ratio of consolidated EBITDDA to the sum of consolidated interest expense and consolidated lease expense (in each case as defined in the Opco Credit Facility) of not less than 3.5 to 1.0. As of June 30, 2024, this ratio was 16.8x.

As of December 31, 2023, the Partnership had $95.8 million in borrowings outstanding under the Opco Credit Facility and $59.2 million of available borrowing capacity. During the six months ended June 30, 2024, the Partnership borrowed $129.9 million and repaid $58.0 million, resulting in $167.7 million in borrowings outstanding under the Opco Credit Facility and $32.3 million of available borrowing capacity as of June 30, 2024. During the six months ended June 30, 2023, the Partnership borrowed $165.0 million and repaid $132.0 million on the Opco Credit Facility. The weighted average interest rate for the borrowings outstanding under the Opco Credit Facility for the three and six months ended June 30, 2024 was 8.92% and 8.93%, respectively. The weighted average interest rate for the borrowings outstanding under the Opco Credit Facility for the three and six months ended June 30, 2023 was 8.61% and 8.44%, respectively.  

The Opco Credit Facility is collateralized and secured by liens on certain of Opco’s assets with carrying values of $309.6 million and $316.3 million classified as mineral rights, net and other long-term assets, net and $24.9 million and $26.3 million classified as long-term contract receivable, net on the Partnership’s Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023, respectively.

Opco Senior Notes   

Opco issued several series of private placement senior notes (the "Opco Senior Notes") with various interest rates and principal due dates. As of June 30, 2024, only the 5.03% and 5.18% Opco Senior Notes, both due December 2026, remain outstanding. These Opco Senior Notes have principal due annually in December and interest due semi-annually in June and December. As of June 30, 2024 and December 31, 2023, the Opco Senior Notes had cumulative principal balances of $43.0 million and $59.7 million, respectively. Opco made mandatory principal payments of $16.7 and $19.1 million during the six months ended June 30, 2024 and 2023, respectively.