Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
OnAugust 3, 2020 (the "Amendment Effective Date"),USA Compression Partners, LP (the "Partnership") entered into Amendment No. 1 (the "First Amendment") to its Sixth Amended and Restated Credit Agreement among the Partnership, as borrower, the guarantors party thereto, the lenders party thereto andJPMorgan Chase Bank, N.A ., as agent and LC Issuer (as defined therein) (as amended from time to time, the "Credit Agreement"). The First Amendment amended the Credit Agreement to, among other items, increase the maximum funded debt to EBITDA ratio to (i) 5.75 to 1.00 for the fiscal quarters endingSeptember 30, 2020 andDecember 31, 2020 , (ii) 5.50 to 1.00 for the fiscal quarters endingMarch 31, 2021 andJune 30, 2021 and (iii) 5.25 to 1.00 for the fiscal quarters endingSeptember 30, 2021 andDecember 31, 2021 (reverting back to 5.00 to 1.00 for each fiscal quarter thereafter). In addition, the First Amendment provides that the 0.5 increase in maximum funded debt to EBITDA ratio applicable to certain future acquisitions (for the six consecutive month period in which any such acquisition occurs) is only available beginning with the fiscal quarter endingSeptember 30, 2021 , and in any case shall not increase the maximum funded debt to EBITDA ratio above 5.50 to 1.00. The First Amendment also provides that, from the Amendment Effective Date until the last day of the fiscal quarter endingDecember 31, 2021 (the "Covenant Relief Period"), the availability requirement in order to make restricted payments from capital contributions and from available cash are each increased from$100 million to$250 million and the availability requirement in order to make prepayments of the Partnership's senior notes, any subordinated indebtedness or any other indebtedness for borrowed money is increased from$100 million to$250 million . In addition, during the Covenant Relief Period, the applicable margin for Eurodollar borrowings is increased from a range of 2.00%-2.75% to a range of 2.25%- 3.00%. The First Amendment further provides that the Partnership becomes guarantor of the obligations of all other guarantors under the Credit Agreement. As of the close of business on the Amendment Effective Date, the Loan Parties (as defined in the Credit Agreement) had approximately$435.0 million of outstanding borrowings and no outstanding letters of credit under the Credit Agreement. The Credit Agreement will mature inApril 2023 . Amounts borrowed and repaid under the Credit Agreement may be re-borrowed.
In connection with entering into the First Amendment, the Partnership paid certain amendment fees to certain lenders party thereto and paid a certain arrangement fee to the arranger of the First Amendment.
The disclosure contained in this Item 2.03 does not purport to be a complete description of the First Amendment and is qualified in its entirety by reference to the First Amendment, which is filed as Exhibit 10.1 hereto and is incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit No. Description 10.1 Amendment No. 1 to the Sixth Amended and
Restated Credit Agreement among
USA Compression Partners, LP , as borrower, the
guarantors party thereto
from time to time, the lenders party thereto from
time to time and JPMorgan
Chase Bank, N.A. , as agent and LC Issuer 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
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