Lehigh Gas amends total leverage covenant under credit facility

By Marisa Wong

Madison, Wis., July 3 – Lehigh Gas Partners LP amended its existing third amended and restated credit agreement dated March 4, 2014 to modify the total leverage ratio covenant, according to an 8-K filing with the Securities and Exchange Commission.

Under the amendment, the total leverage ratio will be less than or equal to 5.50 to 1.00 for the period of April 1 through Sept. 30, 5.00 to 1.00 for the period of Oct. 1 through Dec. 31 and 4.50 to 1.00 for periods after that, except for periods following a material acquisition.

Previously, the company was required to maintain a total leverage ratio of 5.00 to 1.00 for periods through Dec. 31 and 4.50 to 1.00 after that.

However, if an offering of equity interests in the partnership occurs after July 2 but before Dec. 31, the total leverage ratio is not to exceed 4.50 to 1.00 for the fiscal quarter ending Dec. 31, and the total leverage ratio is not to exceed 5.00 to 1.00 for the two full fiscal quarters proceeding the closing of a material acquisition or upon the issuance of qualified senior notes totaling $175 million or more.

The amendment was completed on July 2.

Lehigh Gas Partners, based in Allentown, Pa., is a wholesale distributor of motor fuels and owner and lessee of real estate used in the retail distribution of motor fuels.

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