Business Context and Reporting Period
Company: Natural Resource Partners L.P.
Filing Type: Form 8-K (Current Report)
Date of Report: August 10, 2011
Event: Entry into a material definitive agreement and creation of a direct financial obligation regarding the amendment of the company's revolving credit facility.
Key Financial Metrics
This filing does not report operational financial metrics such as revenue, profit, cash flow, or margins. The financial data provided relates exclusively to debt financing terms:
- Credit Facility Type: Revolving credit facility.
- Current Capacity: $300 million.
- Maximum Capacity (with option): $500 million.
- Term Extension: Extended by five years to 2016.
- Interest Rates:
- Base rate options: Prime rate, Federal Funds rate + 0.50%, or LIBOR + 1%.
- Applicable margin: 0.00% to 1.00% (Base rate options) or 1.00% to 2.25% (LIBOR option).
- Commitment Fee: 0.175% to 0.40% per annum on the unused portion.
Material Changes Versus Prior Period
The primary material change is the amendment of the existing 5-year revolving credit facility. Key changes include:
- Term Extension: The maturity date has been extended by five years, now maturing in 2016.
- Capacity Increase Option: An option was added to increase borrowing capacity from $300 million to a maximum of $500 million.
- Lenders: Citigroup Global Markets, Inc. and Wells Fargo Securities, LLC serve as joint lead arrangers and joint bookrunners.
Guidance, Outlook, and Risks
Management Commentary: The filing confirms the execution of the Second Amended and Restated Credit Agreement. It notes that lenders and their affiliates have provided customary investment banking and financial advisory services for which fees were received.
Risks and Contingencies: The filing does not explicitly detail new risks or contingencies beyond the standard obligations of the amended credit agreement. The company remains subject to the interest rate fluctuations and commitment fees outlined in the new terms.
Important Facts for Investor Verification
- Verify the specific utilization of the $300 million facility and whether the option to increase capacity to $500 million has been exercised.
- Confirm the current applicable interest rate margin based on the company's credit rating or leverage ratios at the time of borrowing.
- Review the full text of the "Second Amended and Restated Credit Agreement" (Exhibit 10.1) for covenants and default provisions not summarized in this 8-K.
- Check subsequent filings for any drawdowns on the facility or changes in the commitment fee rate.