Alliance Resource Partners, L.P. and Alliance Resource Operating Partners, L.P. Enter into a Fifth Amended and Restated Credit Agreement
March 13, 2020 at 11:25 am EDT
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On March 9, 2020, Alliance Resource Partners, L.P. (the "Partnership") and its wholly-owned subsidiary Alliance Resource Operating Partners, L.P. (the "Intermediate Partnership") entered into a Fifth Amended and Restated Credit Agreement (the "Credit Agreement") with various financial institutions, including JPMorgan Chase Bank, N.A. as administrative agent (the "Administrative Agent"). The Credit Agreement provides for a $537.75 million revolving credit facility, reducing to $459.5 million on May 23, 2021, including a sublimit of $125 million for the issuance of letters of credit and a sublimit of $15.0 million for swingline borrowings (the "Revolving Credit Facility"), with a termination date of March 9, 2024, at which time the aggregate outstanding principal amount of all Revolving Credit Facility advances are required to be repaid in full. The Credit Facility replaces the $494.75 million revolving credit facility extended to the Intermediate Partnership under its Fourth Amended and Restated Credit Agreement, dated as of January 27, 2017, by various banks and other lenders, including JPMorgan Chase Bank, N.A. as administrative agent, that would have expired on May 23, 2021. The Credit Agreement is guaranteed by the Partnership and certain of the Intermediate Partnership's material direct and indirect subsidiaries (the "Subsidiary Guarantors") and is secured by substantially all of the assets of the Subsidiary Guarantors, with some exceptions. The Credit Agreement is not secured by the assets of the Partnership's or the Intermediate Partnership's oil & gas subsidiaries, Alliance Minerals, LLC and Alliance Royalty, LLC, or their direct and indirect subsidiaries, collectively the "Unrestricted Subsidiaries". Borrowings under the Revolving Credit Facility bear interest, at option, at either (i) the Base Rate at the greater of three benchmarks or (ii) a Eurodollar Rate, plus margins for (i) or (ii), as applicable, that fluctuate depending upon the ratio of Consolidated Debt to Consolidated Cash Flow (each as defined in the Credit Agreement). The Credit Agreement also provides for other fees, including an annual commitment fee of 0.35% on the undrawn portion of the Revolving Credit Facility and a fee with respect to the available amount under outstanding letters of credit.
Alliance Resource Partners, L.P. is a diversified natural resource company. It is engaged in production and marketing of coal to domestic utilities, industrial users and international customers, as well as royalty income from oil & gas mineral interests. It operates through four segments: Illinois Basin Coal Operations, Appalachia Coal Operations, Oil & Gas Royalties and Coal Royalties. The Illinois Basin Coal Operation includes the Gibson County Coal, LLC mining complex; the Warrior Coal, LLC mining complex; the River View Coal, LLC mining complex and the Hamilton County Coal, LLC mining complex. The Appalachia Coal Operations include the Mettiki mining complex, the Tunnel Ridge mining complex and the MC Mining, LLC mining complex. The Oil & Gas Royalties includes oil and gas mineral interests held by Alliance Minerals as well as its equity interests in AllDale III. The Coal Royalties segment includes coal mineral reserves and resources owned or leased by Alliance Resource Properties.
ALLIANCE RESOURCE PARTNERS, L.P. 
