MARTIN MIDSTREAM PARTNERS L.P.MMLP

MARTIN MIDSTREAM PARTNERS L.P. Debt Disclosure

10-KFiled Feb 21, 20243 min read
LONG-TERM DEBT
    At December 31, 2023 and 2022, long-term debt consisted of the following:
20232022
$175,000 1 Credit facility at variable interest rate (8.80% 1 weighted average at December 31, 2023), due February 2027 4 secured by substantially all of the Partnership’s assets, net of unamortized debt issuance costs of $3,292 and $1,086, respectively 2
$39,208 $169,914 
$400,000 Senior notes, 11.5% interest, net of unamortized debt issuance costs of $8,235 and $$0, respectively, including unamortized premium of $9,800 and $—, respectively, due February 2028, secured 2,3,4
381,965 — 
$53,750 Senior notes, due February 2024, 10.0% interest, net of unamortized debt issuance costs of $0 and $1,288, respectively 2,3
— 52,462 
$291,381 Senior notes, due February 2025, 11.5% interest, net of unamortized debt issuance costs of $0 and $886, respectively 2,3
— 290,495 
Total421,173 512,871 
Less: current portion— — 
Total long-term debt, net of current portion$421,173 $512,871 
Current installments of finance lease obligations$— $9 
Finance lease obligations— — 
Total finance lease obligations$— $9 

    1 Effective February 8, 2023, the interest rate fluctuates based on Adjusted Term SOFR (set on the date of each advance) or the alternate base rate plus an applicable margin. The margin is set every three months. All amounts outstanding at December 31, 2023 were at Adjusted Term SOFR plus an applicable margin. The applicable margin for revolving loans that are SOFR loans currently ranges from 2.75% to 3.75%, and the applicable margin for revolving loans that are alternate base rate loans currently ranges from 1.75% to 2.75%.  The applicable margin for SOFR borrowings at December 31, 2023 is 3.25%. The applicable margin for SOFR borrowings effective February 14, 2024 is 3.25%. The credit facility contains various covenants that limit the Partnership’s ability to make distributions; make certain investments and acquisitions; enter into certain agreements; incur indebtedness; sell assets; and make certain amendments to the Omnibus Agreement.

    2 The Partnership was in compliance with all debt covenants as of December 31, 2023.

3 On February 8, 2023, the Partnership completed the sale of $400,000 in aggregate principal amount of 11.500% senior secured second lien notes due 2028 (the “2028 Notes”). The Partnership used the proceeds of the 2028 Notes to repurchase, through a tender offer and then redemption, all of the Partnership’s 10.00% senior secured 1.5 lien notes due 2024 (the “2024 Notes”) and 11.50% senior secured second lien notes due 2025 (the “2025 Notes”), repay a portion of the indebtedness under the credit facility, and pay fees and expenses in connection with the foregoing. The indenture for the 2028 Notes restricts the Partnership’s ability to sell assets; pay distributions or repurchase units or redeem or repurchase subordinated debt; make investments; incur or guarantee additional indebtedness or issue preferred units; and consolidate, merge or transfer all or substantially all of its assets.
4 Effective February 8, 2023, in connection with the completion of our sale of the 2028 Notes, we amended our credit facility to, among other things, reduce the commitments thereunder from $275,000 to $200,000 (with further scheduled reductions to $175,000 on June 30, 2023 and $150,000 on June 30, 2024) and extend the scheduled maturity date of the amended credit facility to February 8, 2027. In conjunction with the issuance of the 2028 Notes, the Partnership recognized a loss on extinguishment of debt of $5,121 comprised of $2,827 in tender premium, $2,044 of unamortized debt costs and $250 in other expense.
The Partnership paid cash interest, net of capitalized interest, in the amount of $51,607, $50,518, and $51,708 for the years ended December 31, 2023, 2022 and 2021, respectively. Capitalized interest was $310, $0, and $0 for the years ended December 31, 2023, 2022 and 2021, respectively.
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Historical Timeline

Fiscal YearFiled
2023Feb 21, 2024Showing above
2022Mar 2, 2023
2021Mar 1, 2022
2020Mar 3, 2021
2019Feb 14, 2020
2018Feb 19, 2019
2017Feb 16, 2018
2016Feb 15, 2017
2015Feb 29, 2016

About Debt Disclosures

Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.

Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.

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