Genesis Energy amends credit facility for add-back, to adjust covenants

By Taylor Fox

Chicago, July 30 – Genesis Energy, LP has executed an amendment to its existing senior secured credit facility, according to a news release.

The amendment will add back to adjusted consolidated EBITDA about $13.5 million of one-time charges associated with cost savings initiatives for the test period ended June 30 and for the following three test periods.

In addition, to help manage near-term uncertainty related to the Covid-19 pandemic, the company’s consolidated leverage ratio covenant will increase to 5.75 times in the third quarter of 2020 through the first quarter of 2021 and then revert back to 5.50 times for the remaining term of the facility, which currently runs through May 2022.

Also, the consolidated interest coverage ratio covenant will decrease to 2.75 times in the third quarter of 2020 through the first quarter of 2021 and then revert back to 3.00 times for the remaining term of the facility.

Genesis is an oil and gas master limited partnership based in Houston.

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