Martin Midstream amends loan to increase size, lower rate

By Sara Rosenberg

New York, May 4 - Martin Midstream Partners LP amended its credit facility, increasing the size to $150 million from $100 million and reducing the interest rate by 50 basis points, according to an 8-K filed with the Securities and Exchange Commission Wednesday.

The interest rate and the commitment fee are based on leverage. If the company's leverage ratio is less than 2.00:1.00, the rate is Libor plus 125 basis points and the commitment fee is 37.5 bps. If the leverage ratio is greater than or equal to 2.00:1.00 but less than 2.50:1.00, the rate is Libor plus 150 bps and the commitment fee is 37.5 bps. If the leverage ratio is greater than or equal to 2.50:1.00 but less than 2.75:1.00, the rate is Libor plus 175 bps and the commitment fee is 37.5 bps. If the leverage ratio is greater than or equal to 2.75:1.00 but less than 3.00:1.00, the rate is Libor plus 200 bps and the commitment fee is 37.5 bps. And, if the leverage ratio is greater than or equal to 3.00:1.00, the rate is Libor plus 225 bps and the commitment fee is 50 bps.

The amendment was completed on Tuesday.

Royal Bank of Canada is administrative agent on the deal.

Martin Midstream is a Kilgore, Texas-based provider of marine transportation, terminalling, distribution and midstream logistical services for producers and suppliers of hydrocarbon products and by-products, lubricants and other liquids.

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