Long-Term Debt and Capital Leases

At September 30, 2013 and December 31, 2012, long-term debt consisted of the following:



	September 30, 2013		December 31, 2012
$600,000 Revolving credit facility at variable interest rate (3.13%* weighted average at September 30, 2013), due March 2018 secured by substantially all of the Partnership’s assets, including, without limitation, inventory, accounts receivable, vessels, equipment, fixed assets and the interests in the Partnership’s operating subsidiaries and equity method investees	$	219,000	$	296,000
$200,000** Senior notes, 8.875% interest, net of unamortized discount of $1,381 and $1,612, respectively, issued March 2010 and due April 2018, unsecured	173,619		173,388
$250,000 Senior notes, 7.250% interest, issued February 2013 and due February 2021, unsecured	250,000		—
$3,315 Note payable to bank, interest rate at 4.75%, maturity date of October 2029, unsecured	2,885		2,971
Capital lease obligations	5,673		5,839
Total long-term debt and capital lease obligations	651,177		478,198
Less current installments	3,173		3,206
Long-term debt and capital lease obligations, net of current installments	$	648,004	$	474,992

* Interest rate fluctuates based on the LIBOR rate plus an applicable margin set on the date of each advance. The margin above LIBOR is set every three months. Indebtedness under the credit facility bears interest at LIBOR plus an applicable margin or the base prime rate plus an applicable margin. The applicable margin for revolving loans that are LIBOR loans ranges from 2.00% to 3.00% and the applicable margin for revolving loans that are base prime rate loans ranges from 1.00% to 2.00%. The applicable margin for existing LIBOR borrowings is 2.50%. Effective October 1, 2013, the applicable margin for existing LIBOR borrowings remained at 2.50%. Effective January 1, 2014, the applicable margin for existing LIBOR borrowings will increase to 3.00%. As of November 4, 2013, the Partnership's weighted average interest rate on its revolving loan facility is 2.80%.

** Pursuant to the Indenture under which the Senior Notes due in 2018 were issued, the Partnership has the option to redeem up to 35% of the aggregate principal amount at a redemption price of 108.875% of the principal amount, plus accrued and unpaid interest with the proceeds of certain equity offerings. On April 24, 2012, the Partnership notified the Trustee of its intention to exercise a partial redemption of the Partnership’s Senior Notes pursuant to the Indenture. On May 24, 2012, the Partnership redeemed $25,000 of the Senior Notes from various holders using proceeds of the Partnership’s January 2012 follow-on equity offering, which in the interim were used to pay down amounts outstanding under the Partnership’s revolving credit facility.

Effective March 28, 2013, the Partnership increased the maximum amount of borrowings and letters of credit available under the Credit Facility from $400,000 to $600,000 and extended the maturity date of the facility from April 2016 to March 2018.

On February 11, 2013, the Partnership completed a private placement of $250,000 in aggregate principal amount of 7.250% senior unsecured notes due 2021 to qualified institutional buyers under Rule 144A. The Partnership filed with the SEC a registration statement to exchange the 2021 Notes for substantially identical notes that are registered under the Securities Act, and completed the exchange offer on July 31, 2013.

The Partnership paid cash interest in the amount of $11,289 and $4,696 for the three months ended September 30, 2013 and 2012, respectively. The Partnership paid cash interest in the amount of $22,897 and $19,039 for the nine months ended September 30, 2013 and 2012, respectively. Capitalized interest was $326 and $175 for the three months ended September 30, 2013 and 2012, respectively. Capitalized interest was $744 and $799 for the nine months ended September 30, 2013 and 2012, respectively.