Debt and Lines of Credit | 5. DEBT AND LINES OF CREDIT Debt consisted of the following: September 30, 2017 December 31, 2016 (In thousands) Term Loan $ 311,628 $ 306,189 Capital lease obligations 14,407 16,351 Other 430 589 Total debt outstanding 326,465 323,129 Less debt issuance costs (3,445 ) (5,483 ) Less current installments (4,220 ) (3,819 ) Total debt outstanding, less current installments $ 318,800 $ 313,827 The following table presents remaining aggregate contractual debt maturities of all long-term debt: September 30, 2017 (In thousands) 2017 $ 1,660 2018 315,804 2019 4,105 2020 1,694 2021 1,586 Thereafter 1,616 Total debt $ 326,465 Credit Facilities Covenant Compliance Our lending arrangements contain, among other terms, events of default and various affirmative and negative covenants, financial covenants and cross-default provisions. We are in compliance with all covenants and conditions under our debt agreements as of September 30, 2017, and based on our quarterly projections, we anticipate that we will maintain compliance with the financial covenants and have sufficient liquidity to meet our obligations as they become due within one year after the date of the filing of this Quarterly Report. Continuing to meet our obligations and to comply with our financial covenants depends on our ability to generate adequate cash flows and refinance or extend the maturity of debt obligations as they become due. Certain affirmative covenants provide that an audit opinion on our consolidated financial statements that includes an explanatory paragraph expressing substantial doubt about the Partnership's ability to continue as a going concern constitutes an event of default, which would cause the term loan of the Partnership ("Term Loan") to become immediately due and payable. Should we be unable to comply with any future covenant, we will be required to seek a waiver of such covenant to avoid an event of default. Covenant waivers and modifications may be expensive to obtain, or, potentially, unavailable. Term Loan Pursuant to the financing agreement (“2014 Financing Agreement”), dated as of December 31, 2014, by and among Oxford Mining Company, LLC, the Partnership and each of its subsidiaries, lenders from time to time party thereto, and U.S. Bank National Association, as administrative agent, the Term Loan matures on December 31, 2018 and pays interest on a quarterly basis at a variable rate equal to the 3-month London Interbank Offered Rate (“LIBOR”) at each period end ( 1.30% as of September 30, 2017 ), subject to a floor of 0.75% , plus 8.50% or the reference rate, as defined in the 2014 Financing Agreement. As of September 30, 2017 , the cash interest rate was 9.80% . The Term Loan is a primary obligation of Oxford Mining Company, LLC, a wholly owned subsidiary of the Partnership, is guaranteed by the Partnership and its subsidiaries, and is secured by substantially all of the Partnership’s and its subsidiaries’ assets. The 2014 Financing Agreement also provides for Paid-In-Kind Interest (“PIK Interest”) at a variable rate between 1.00% and 3.00% based on our consolidated total net leverage ratio, as defined in the 2014 Financing Agreement. The rate of PIK Interest is determined on a quarterly basis with the PIK Interest added quarterly to the then-outstanding principal amount of the Term Loan. PIK Interest under the 2014 Financing Agreement was $2.3 million and $7.0 million for the three and nine months ended September 30, 2017 , respectively. The outstanding Term Loan amount as of September 30, 2017 represents the principal balance of $288.6 million , plus PIK Interest of $23.1 million . The 2014 Financing Agreement requires mandatory prepayment of principal with proceeds from the receipt of oil and gas royalties. During the three and nine months ended September 30, 2017 , respectively, we paid down $0.3 million and $1.5 million of the Term Loan with such proceeds. The 2014 Financing Agreement limits cash distributions to an aggregate amount not to exceed $15.0 million (“Restricted Distributions”), if we have: (i) a consolidated total net leverage ratio of greater than 3.75 , or fixed charge coverage ratio of less than 1.00 (as such ratios are defined in the 2014 Financing Agreement), or (ii) liquidity of less than $7.5 million , after giving effect to such cash distribution and applying our availability under the Revolver. As of September 30, 2017 , our consolidated total net leverage ratio is in excess of 3.75 , and we have made $14.8 million in Restricted Distributions. With the declaration of distribution on October 27, 2017 , we will have utilized the full $15.0 million limit on Restricted Distributions and we will be restricted from making any further distributions under the terms of the 2014 Financing Agreement unless we meet the above ratios and liquidity requirements. Revolver On October 23, 2015, the Partnership and its subsidiaries entered into a loan and security agreement with the lenders party thereto and Canadian Imperial Bank of Commerce (formerly known as The PrivateBank and Trust Company), as administrative agent (the "Revolver"), which permits borrowings up to the aggregate principal amount of $15.0 million , subject to borrowing base calculations as defined in the agreement and letters of credit in an aggregate outstanding amount of up to $10.0 million , which reduces availability under the Revolver on a dollar-for-dollar basis. At September 30, 2017 , availability under the Revolver was $14.8 million . The Revolver contains the same limitations on Restricted Distributions as described above under the 2014 Financing Agreement. The Revolver has a maturity date of December 31, 2017. Capital Lease Obligations The Partnership engages in leasing transactions for equipment utilized in its mining operations. The Partnership did not enter into any new capital leases during the nine months ended September 30, 2017 . |