USD Partners LP amends credit agreement to ease covenants, signaling financial strain

USD Partners LP

Maximum consolidated leverage ratio increased to 5.5x for Q1/Q2 2023 and 5.25x for Q3 2023.
Minimum consolidated interest coverage ratio reduced to 2.25x for Q2 2023 and 2.0x for Q3 2023.
Distributions restricted if pro forma leverage exceeds 4.5x or liquidity below $20M.
Borrowing spreads increased and LIBOR replaced with Term SOFR; asset sale proceeds must repay borrowings.
Amendment effective January 31, 2023; all Loan Parties reaffirmed guaranties and security.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

USD Partners LP amended Amendment with Bank of Montreal, as administrative agent, and the lenders party thereto (effective 2023-01-31).

Action: amendment
Agreement: credit facility
Counterparty: Bank of Montreal, as administrative agent, and the lenders party thereto
Effective: 2023-01-31

Exact text from the filing

On January 31, 2023 (the “Effective Date”), USD Partners LP (the “Partnership”) and USD Terminals Canada ULC, an indirect, wholly-owned subsidiary of the Partnership (together with the Partnership, the “Borrowers”), and the subsidiary guarantors party thereto, entered into an amendment (the “Amendment”) to the Borrowers’ existing revolving credit agreement, dated as of November 2, 2018 (as so amended and as previously amended, the “Credit Agreement”), with the lenders party thereto and Bank of Montreal, as administrative agent.

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USD Partners LP filing history →

Source: SEC EDGAR

accession 0001193125-23-025703

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