Quarterly report pursuant to Section 13 or 15(d)

DEBT

v3.23.2
DEBT
 6 Months Ended
Jun. 30, 2023
Debt Disclosure [Abstract]  
DEBT DEBT
The following is a summary of the Company's debt facilities and balances as of June 30, 2023 and December 31, 2022:
Total Commitment
 or Original Principal
Quarterly Principal Payments(2)
June 30, 2023 December 31, 2022
Maturity
Date		 Amount Outstanding Interest
Rate		 Amount Outstanding Interest
Rate
Crimson Credit Facility:
Crimson Revolver $ 50,000,000  $ —  5/3/2024 $ 41,000,000  9.71  % $ 35,000,000  8.41  %
Crimson Term Loan 80,000,000  2,000,000  5/3/2024 62,000,000  9.70  % 66,000,000  8.22  %
Crimson Uncommitted Incremental Credit Facility 25,000,000  —  5/3/2024 —  —  % —  —  %
5.875% Convertible Notes
 120,000,000  —  8/15/2025 118,050,000  5.875  % 118,050,000  5.875  %
Total Debt $ 221,050,000  $ 219,050,000 
Less:
Unamortized deferred financing costs on 5.875% Convertible Notes
 $ 176,951  $ 218,587 
Unamortized discount on 5.875% Convertible Notes
 1,220,669  1,507,883 
Unamortized deferred financing costs on Crimson Term Loan(1)
403,951  665,547 
Total Debt, net of deferred financing costs $ 219,248,429  $ 216,657,983 
Debt due within one year $ 103,000,000  $ 10,000,000 
(1) Unamortized deferred financing costs related to the Company's revolving credit facilities are included in Deferred Costs in the Assets section of the Consolidated Balance Sheets.
(2) The required quarterly principal payments will increase from $2.0 million to $3.0 million beginning with the payment due September 30, 2023.
Crimson Credit Facility
The Crimson Credit Facility provides borrowing capacity of up to $155.0 million, consisting of: a $50.0 million revolving credit facility ("Crimson Revolver"), an $80.0 million term loan ("Crimson Term Loan") and an uncommitted incremental credit facility of $25.0 million. On September 14, 2022, the Borrowers completed the first amendment to the Amended and Restated Credit Agreement, which replaced the use of a LIBOR reference rate with the Secured Overnight Financing Rate ("SOFR"). On March 6, 2023, the Company completed the second amendment to the Amended and Restated Credit Agreement, which extended the maturity of the Crimson Credit Facility from its maturity on February 4, 2024 to May 3, 2024 and amended the applicable total leverage ratio in the first two quarters of 2023 from 2.50 to 2.75, as well as increased the required quarterly amortization of the term loan from $2.0 million to $3.0 million beginning in the third quarter of 2023. The Company's total leverage ratio of 2.80 for the second quarter of 2023 violated the 2.75 covenant requirement and the Company utilized an equity cure as allowed by the terms of the Amended and Restated Credit Agreement to remedy the violation. On August 14, 2023, the parties entered into the third amendment to the Amended and Restated Credit Agreement (the "Third Agreement"), which amended the applicable total leverage ratio in the third and fourth quarters of 2023 from 2.50 to 3.75, which is anticipated to prevent any additional covenant violations before the completion of the sale of the MoGas and Omega assets around the end of the calendar year, although no such assurance can be given.
Crimson Credit Facility Contractual Payments
The remaining contractual principal payments as of June 30, 2023 under the Crimson Credit Facility are as follows:
Year Crimson Term Loan Crimson Revolver Total
2023 $ 6,000,000  $ —  $ 6,000,000 
2024 56,000,000  41,000,000  97,000,000 
Total Remaining Contractual Payments $ 62,000,000  $ 41,000,000  $ 103,000,000 
Crimson Credit Facility Interest Expense
A summary of the Crimson Credit Facility interest expense and deferred debt cost amortization expense for the three and six months ended June 30, 2023 and 2022 is as follows:
Crimson Credit Facility Interest Expense
For the Three Months Ended For the Six Months Ended
June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022
Interest Expense $ 2,543,140  $ 1,294,463  $ 4,953,026  $ 2,365,141 
Deferred Debt Cost Amortization Expense(1)(2)
191,630  247,635  445,198  495,270 
Less: Capitalized Interest 206,703  97,476  363,876  167,218 
Total Crimson Credit Facility Interest Expense $ 2,528,067  $ 1,444,622  $ 5,034,348  $ 2,693,193 
(1) Amortization of deferred debt issuance costs is included in interest expense in the Consolidated Statements of Operations.
(2) For the amount of deferred debt cost amortization relating to the convertible notes included in the Consolidated Statements of Operations, refer to the Convertible Notes Interest Expense table below.
Convertible Debt Interest Expense
A summary of the 5.875% Convertible Notes interest expense, discount amortization, and deferred debt issuance amortization expense for the three and six months ended June 30, 2023 and 2022 is as follows:
Convertible Note Interest Expense
For the Three Months Ended For the Six Months Ended
June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022
5.875% Convertible Notes:
Interest Expense $ 1,733,859  $ 1,733,859  $ 3,467,718  $ 3,467,718 
Discount Amortization 143,607  143,607  287,214  287,214 
Deferred Debt Issuance Amortization 20,818  20,818  41,636  41,636 
Total 5.875% Convertible Note Interest Expense
 $ 1,898,284  $ 1,898,284  $ 3,796,568  $ 3,796,568 
Including the impact of the convertible debt discount and related deferred debt issuance costs, the effective interest rate on the 5.875% Convertible Notes was approximately 6.4% for each of the three and six months ended June 30, 2023 and 2022.
Note PayableDuring the fourth quarter of 2022, the Company entered into a short-term financing agreement in order to fund Company insurance needs. As of June 30, 2023 and December 31, 2022, the outstanding balance on the note payable was $882 thousand and $3.5 million, respectively. The note bears interest at 5.7% with monthly payments due until September 2023.