Note 4 - Debt

3 Months Ended

Mar. 31, 2024

Notes To Financial Statements

DEBT

NOTE 4—DEBT

Outstanding debt consisted of the following:

(In thousands)	March 31, 2024		December 31, 2023
Revolving Credit Facility	$	41,500	$	42,500
Equipment loans		2,466		2,983
Senior Notes, net		33,412		33,296
Financing of Maben Coal acquisition		9,000		11,400
Total debt	$	86,378	$	90,179
Current portion of long-term debt		28,227		56,534
Long-term debt, net	$	58,151	$	33,645

Revolving Credit Facility—On February 15, 2023, the Company entered into the Second Amended and Restated Credit and Security Agreement, which includes KeyBank National Association (“KeyBank”) and multiple lending parties. This facility (the “Revolving Credit Facility”), which has a maturity date of February 15, 2026, provides an initial aggregate revolving commitment of $125.0 million as well as an accordion feature of $50.0 million subject to certain terms and conditions, including lenders’ consent. The borrowing base at March 31, 2024 was $106.8 million based on eligible accounts receivable and inventory collateral and reserve requirements. The remaining availability under the Revolving Credit Facility at March 31, 2024, after $41.5 million of outstanding borrowings, was $65.3 million.

Revolving loans under the facility bear interest at either the base rate plus 1.50% or the Secured Overnight Financing Rate plus 2.00%. The base rate equals the highest of the administrative agent’s prime rate, the Federal Funds Effective Rate plus 0.5%, or 3%.

The terms of the facility include covenants limiting the ability of the Company to incur additional indebtedness, make investments or loans, incur liens, consummate mergers and similar fundamental changes, make restricted payments, and enter into transactions with affiliates. The terms of the facility also require the Company to maintain certain covenants, including fixed charge coverage ratio and compensating balance requirements. A fixed charge coverage ratio of not less than 1.10:1.00, calculated as of the last day of each fiscal quarter, must be maintained by the Company. In addition, the Company must maintain an average daily cash balance of $5 million, as determined on a monthly basis, in a dedicated account as well as an additional $1 million in a separate dedicated account to assure future credit availability. At March 31, 2024, we were in compliance with all debt covenants under the Revolving Credit Facility.

Fair Value—The Company’s Senior Notes had an estimated fair value of approximately $35.4 million and $35.5 million at March 31, 2024 and December 31, 2023, respectively. The fair values of the Company’s Senior Notes were based on observable market prices and were considered a Level 2 measurement based on trading volumes. The difference between the fair value and carrying amount of the Company’s remaining debts is not material due to the similarity between the terms of the debt agreements and prevailing market terms available to the Company.

Current Portion of Long-term Debt—Scheduled debt repayments to occur over the next twelve months from March 31, 2024 include $17.0 million of borrowings under the Revolving Credit Facility that were repaid shortly after the balance sheet date using funds from current operations, $9.0 million of Maben Coal acquisition financing shown above, and $2.2 million of equipment loans.

Other—Finance lease obligations and liabilities related to insurance premium financing are excluded from the disclosures above.