Debt and Lines of Credit | 6. DEBT AND LINES OF CREDIT Debt consisted of the following: June 30, 2018 December 31, 2017 (In thousands) Term Loan $ 315,945 $ 312,734 Capital lease obligations 11,477 13,478 Other 265 375 Total debt outstanding 327,687 326,587 Less debt issuance costs (1,392 ) (2,754 ) Less current installments, net of debt issuance costs (318,950 ) (314,228 ) Total debt outstanding, less current installments $ 7,345 $ 9,605 The following table presents remaining aggregate contractual debt maturities of all long-term debt: June 30, 2018 (In thousands) 2018 $ 318,084 2019 4,174 2020 1,766 2021 1,664 2022 1,999 Thereafter — Total debt $ 327,687 Term Loan Pursuant to the financing agreement (as amended, the “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, we entered into a term loan (“Term Loan”) which 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 ( 2.33% as of June 30, 2018 ), subject to a floor of 0.75% , plus 8.50% or the reference rate, as defined in the 2014 Financing Agreement. As of June 30, 2018 , the Term Loan had a cash interest rate of 10.83% . 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. As of June 30, 2018 and December 31, 2017 , the Term Loan had a PIK Interest rate of 3.00% . The rate of PIK Interest is recalculated 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 $2.4 million and $4.8 million for the three and six months ended June 30, 2018 , respectively, and $2.3 million and $4.6 million for the three and six months ended June 30, 2017 , respectively. The outstanding Term Loan amount as of June 30, 2018 represents the principal balance of $285.8 million , plus PIK Interest of $30.2 million . The 2014 Financing Agreement requires mandatory prepayment of principal with proceeds from the receipt of oil and gas royalties and asset sales. During the three and six months ended June 30, 2018 , respectively, we paid down $0.3 million and $0.8 million of the Term Loan with such proceeds. The 2014 Financing Agreement limits cumulative 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 a 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 June 30, 2018 , our consolidated total net leverage ratio is in excess of 3.75 , our fixed charge coverage ratio is less than 1.00 and we have utilized the full $15.0 million limit on Restricted Distributions. Covenant Compliance The Partnership does not currently have liquidity or access to additional capital sufficient to pay off the Term Loan by its December 31, 2018 maturity date. This condition gives rise to substantial doubt as to the Partnership’s ability to continue as a going concern within one year after the date that these financial statements were issued. Certain affirmative covenants in our 2014 Financing Agreement provide that an audit opinion on our consolidated financial statements that includes an explanatory paragraph referencing our conclusion that substantial doubt exists as to the Partnership's ability to continue as a going concern constitutes an event of default. The audit report included in our 2017 Form 10-K contained such an explanatory paragraph. On March 1, 2018, we entered into a waiver and amendment number three to the 2014 Financing Agreement that waived any such event of default arising from the inclusion of a going concern explanatory paragraph in the audit report included in our 2017 Form 10-K. Prior to the expiration of the aforementioned waiver on May 15, 2018, we entered into a series of amendments that ultimately continued to waive any such event of default through September 8, 2018 (“Waiver”) or the occurrence of any other event of default that has not been waived as part of the Waiver. Accordingly, on expiration of the Waiver, the lenders could accelerate the maturity date of the Term Loan, making it immediately due and payable. For more detail please refer to Note 1. Basis Of Presentation "Going Concern, Liquidity and Management’s Plan." Revolver On October 23, 2015, the Partnership and its subsidiaries entered into a Loan and Security Agreement (the “Revolver”) with the lenders party thereto and Canadian Imperial Bank of Commerce (formerly known as The PrivateBank and Trust Company). The Revolver expired on its December 31, 2017 maturity date and management elected not to replace or extend it. Capital Lease Obligations The Partnership engages in leasing transactions for office equipment and equipment utilized in its mining operations. The Partnership did not enter into any new capital leases during the six months ended June 30, 2018 . |