Long-Term Debt

At September 30, 2015 and December 31, 2014, long-term debt consisted of the following:



	September 30, 2015		December 31, 2014
$700,000¹ Revolving credit facility at variable interest rate (2.95%² weighted average at September 30, 2015), 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, net of unamortized debt issuance costs of $5,400 and $8,656, respectively⁴	$	494,600	$	491,344
$400,000³ Senior notes, 7.25% interest, net of unamortized debt issuance costs of $3,758 and $4,462, respectively, including unamortized premium of $1,688 and $2,005, respectively, issued $250,000 February 2013 and $150,000 April 2014, due February 2021, unsecured⁴	381,805		397,543
Total long-term debt, net	876,405		888,887
Less current installments	—		—
Long-term debt, net of current installments	$	876,405	$	888,887

¹ On August 14, 2015, the Partnership reduced its borrowing capacity under the revolving credit facility from $900,000 to $700,000. The facility can be expanded up to $1,000,000 at any time under the accordion feature of the facility. The reduction in capacity resulted in the write-off of $1,625 of deferred debt costs.

² 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. All amounts outstanding at September 30, 2015 and December 31, 2014 were at LIBOR plus an applicable margin. The applicable margin for revolving loans that are LIBOR loans ranges from 1.75% to 2.75% and the applicable margin for revolving loans that are base prime rate loans ranges from 0.75% to 1.75%. The applicable margin for existing LIBOR borrowings at September 30, 2015 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.

³In September 2015, the Partnership repurchased on the open market an aggregate $16,125 of 7.25% senior unsecured notes. These transactions resulted in a gain on retirement of $728, including the write-off of applicable pro-rata portion of deferred debt costs and premium.

⁴ The Partnership is in compliance with all debt covenants as of September 30, 2015.

The Partnership paid cash interest, net of proceeds received from interest rate swaptions, in the amount of $18,017 and $17,346 for the three months ended September 30, 2015 and 2014, respectively. The Partnership paid cash interest, net of proceeds received from interest rate swaptions, in the amount of $39,121 and $35,770 for the nine months ended September 30, 2015 and 2014, respectively. Capitalized interest was $427 and $234 for the three months ended September 30, 2015 and 2014, respectively. Capitalized interest was $1,522 and $957 for the nine months ended September 30, 2015 and 2014, respectively.