Debt |
9 Months Ended |
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Sep. 30, 2016 | |
| Debt Disclosure [Abstract] | |
| Debt |
Debt
Mammoth Credit Facility
On November 25, 2014, Mammoth entered into a revolving credit and security agreement with a bank that provides for maximum borrowings of $170 million. The facility, as amended in connection with the IPO, matures on November 25, 2019. Borrowings under this facility are secured by the assets of Mammoth, inclusive of the subsidiary companies. The maximum availability of the facility is subject to a borrowing base calculation prepared monthly. Concurrent with the execution of the facility, the initial advance was used to repay all the debt of the Partnership then outstanding. Interest is payable monthly at a base rate set by the institution’s commercial lending group plus an applicable margin. Additionally, at the Partnership’s request, outstanding balances are permitted to be converted to LIBOR rate plus applicable margin tranches at set increments of $500,000. The LIBOR rate option allows the Partnership to select interest periods from one, two, three or six months. The applicable margin for either the base rate or the LIBOR rate option can vary from 1.5% to 3.0%, based upon a calculation of the excess availability of the line as a percentage of the maximum credit limit. The deferred loan costs associated with this facility are classified in Other non-current assets.
At September 30, 2016, $72.0 million was outstanding under the facility, all of which was in a one month LIBOR rate option tranche with an interest rate of 3.28%. As of September 30, 2016, Mammoth had availability of $68.8 million.
At December 31, 2015, $95.0 million of the outstanding balance of the facility was in a one month LIBOR rate option tranche with an interest rate of 3.04%. As of December 31, 2015, Mammoth had availability of $44.6 million.
The Mammoth facility also contains various customary affirmative and restrictive covenants. Among the various covenants are specifically identified financial covenants placing requirements of a minimum interest coverage ratio (3.0 to 1.0), maximum leverage ratio (4.0 to 1.0), and minimum availability ($10 million). As of December 31, 2015 and September 30, 2016, the Partnership was in compliance with its covenants under the facility.
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