Long-Term Debt

At June 30, 2014 and December 31, 2013, long-term debt consisted of the following:



	June 30, 2014		December 31, 2013
$900,000³ Revolving credit facility at variable interest rate (2.97%¹ weighted average at June 30, 2014), 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	$	290,000	$	235,000
$200,000² Senior notes, 8.875% interest, net of unamortized discount of $0 and $1,305, respectively, issued March 2010 and due April 2018, unsecured	—		173,695
$400,000 Senior notes, 7.250% interest, including unamortized premium of $2,168 and $0, issued $250,000 February 2013 and $150,000 April 2014, due February 2021, unsecured²	402,168		250,000
Total long-term debt	692,168		658,695
Less current installments	—		—
Long-term debt, net of current installments	$	692,168	$	658,695

¹ 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 at June 30, 2014 is 2.75%. The credit facility contains various covenants which limit the Partnership’s ability to make certain investments and acquisitions; enter into certain agreements; incur indebtedness; sell assets; and make certain amendments to the Partnership's omnibus agreement with Martin Resource Management (the "Omnibus Agreement"). The Partnership is permitted to make quarterly distributions so long as no event of default exists.

² Pursuant to the Indenture under which the Senior Notes due in 2018 were issued, the Partnership had 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 1, 2014, the Partnership redeemed the remaining $175,000 of the 8.875% senior unsecured notes due in 2018 from all holders. On April 1, 2014, the Partnership completed a private placement add-on of $150,000 in aggregate principal amount of 7.250% senior unsecured notes due February 2021 to qualified institutional buyers under Rule 144A. The Partnership filed with the SEC a registration statement to exchange these notes for substantially identical notes that are registered under the Securities Act and commenced an exchange offer on April 28, 2014. The exchange offer was completed during the second quarter of 2014. In conjunction with this redemption, the Partnership incurred a debt prepayment premium of $7,767, on the Partnership's Consolidated and Condensed Statement of Operations for the three and six months ended June 30, 2014. Also in conjunction with the redemption, the Partnership expensed $2,643 and $1,228 of unamortized debt issuance costs and unamortized discount on notes payable, respectively, which is included in "Interest expense" on the Partnership's Consolidated and Condensed Statement of Operations for the three and six months ended June 30, 2014.

³ On June 27, 2014, the Partnership increased the maximum amount of borrowings and letters of credit available under the Partnership's revolving credit facility from $637,500 to $900,000.

The Partnership paid cash interest in the amount of $6,735 and $9,391 for the three months ended June 30, 2014 and 2013, respectively. The Partnership paid cash interest in the amount of $18,424 and $11,608 for the six months ended June 30, 2014 and 2013, respectively. Capitalized interest was $335 and $238 for the three months ended June 30, 2014 and 2013, respectively. Capitalized interest was $723 and $418 for the six months ended June 30, 2014 and 2013, respectively.