Quarterly report pursuant to Section 13 or 15(d)

DEBT

v3.23.3
DEBT
 9 Months Ended
Sep. 30, 2023
Debt Disclosure [Abstract]  
DEBT DEBT
The following is a summary of the Company's debt facilities and balances as of September 30, 2023 and December 31, 2022:
Total Commitment
 or Original Principal
Quarterly Principal Payments(2)
September 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 $ 45,000,000  10.20  % $ 35,000,000  8.41  %
Crimson Term Loan 80,000,000  3,000,000  5/3/2024 59,000,000  10.20  % 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 $ 222,050,000  $ 219,050,000 
Less:
Unamortized deferred financing costs on 5.875% Convertible Notes
 $ 156,134  $ 218,587 
Unamortized discount on 5.875% Convertible Notes
 1,077,063  1,507,883 
Unamortized deferred financing costs on Crimson Term Loan(1)
283,965  665,547 
Total Debt, net of deferred financing costs $ 220,532,838  $ 216,657,983 
Debt due within one year $ 104,000,000  $ 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 increased 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. On August 14, 2023, the parties entered into the third amendment to the Amended and Restated Credit 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 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. There were no covenant violations for the third quarter of 2023 and the Company does not expect any covenant violations for the remainder of 2023.
Crimson Credit Facility Contractual Payments
The remaining contractual principal payments as of September 30, 2023 under the Crimson Credit Facility are as follows:
Year Crimson Term Loan Crimson Revolver Total
2023 $ 3,000,000  $ —  $ 3,000,000 
2024 56,000,000  45,000,000  101,000,000 
Total Remaining Contractual Payments $ 59,000,000  $ 45,000,000  $ 104,000,000 
Crimson Credit Facility Interest Expense
A summary of the Crimson Credit Facility interest expense and deferred debt cost amortization expense for the three and nine months ended September 30, 2023 and 2022 is as follows:
Crimson Credit Facility Interest Expense
For the Three Months Ended For the Nine Months Ended
September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022
Interest Expense $ 2,652,829  $ 1,446,620  $ 7,605,854  $ 3,811,763 
Deferred Debt Cost Amortization Expense(1)(2)
174,735  247,635  619,934  742,905 
Less: Capitalized Interest 226,532  109,331  590,408  276,551 
Total Crimson Credit Facility Interest Expense $ 2,601,032  $ 1,584,924  $ 7,635,380  $ 4,278,117 
(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 nine months ended September 30, 2023 and 2022 is as follows:
Convertible Note Interest Expense
For the Three Months Ended For the Nine Months Ended
September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022
5.875% Convertible Notes:
Interest Expense $ 1,733,859  $ 1,733,859  $ 5,201,577  $ 5,201,577 
Discount Amortization 143,607  143,607  430,821  430,821 
Deferred Debt Issuance Amortization 20,818  20,818  62,454  62,454 
Total 5.875% Convertible Note Interest Expense
 $ 1,898,284  $ 1,898,284  $ 5,694,852  $ 5,694,852 
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 nine months ended September 30, 2023 and 2022.
Note PayableDuring the fourth quarter of 2022, the Company entered into a short-term financing agreement in order to fund insurance needs. As of September 30, 2023 and December 31, 2022, the outstanding balance on the note payable was $0 and $3.5 million, respectively. The note bears interest at 5.7% with monthly payments due until September 2023.