Martin Midstream amends facility, revising size, maturity and pricing

By Sara Rosenberg

New York, April 21 - Martin Midstream Partners LP amended its credit facility, increasing the size to $350 million from $275 million, extending the maturity to April 15, 2016 from March 15, 2013 and lowering pricing, according to an 8-K filed with the Securities and Exchange Commission on Thursday.

Pricing on the facility ranges from Libor plus 200 basis points to 325 bps, and the commitment fee ranges from 37.5 bps to 50 bps, based on leverage. Current pricing is Libor plus 250 bps with a 37.5 bps commitment fee.

In addition, the amendment, requires the company to maintain EBITDA to consolidated interest charges of not less than 2.75 to 1.00 at the end of each fiscal quarter, total funded debt to EBITDA of not more than 5.00 to 1.00 at the end of each fiscal quarter and total secured debt to EBITDA of not more than 3.25 to 1.00 at the end of each fiscal quarter.

Furthermore, the amendment allows the company to incur up to $35 million in additional debt.

The amendment was completed on April 15.

Royal Bank of Canada is the administrative agent on the deal. The amendment was arranged by Wells Fargo Securities LLC and RBC Capital Markets.

After giving effect to the amendment, the company had $144 million drawn under the facility and $206 million available for additional borrowing.

Martin Midstream is a Kilgore, Texas-based collector, transporter, storer and marketer of petroleum products and by-products.

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