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USD Partners Announces Forbearance Agreement Under Credit Agreement
USD Partners Announces Forbearance Agreement Under Credit Agreement.
About this update from Usd Partners Lp
[{"type":"text","content":"\nUSD Partners LP (OTC: USDP) (the “Partnership”) announced today that on June 21, 2024 it entered into an agreement (the “Forbearance Agreement”) with the lenders and administrative agent under its existing Credit Agreement. Pursuant to the Forbearance Agreement, subject to certain terms and conditions, the lenders have agreed to forbear through and until November 1, 2024 (the “Termination Date”), from exercising any rights or remedies arising from certain events of default and certain prospective events of default related to the Partnership’s failure to satisfy certain milestones under the Credit Agreement and other loan documents.\n\n\nIn exchange for agreeing to enter into the Forbearance Agreement, the lenders under the Credit Agreement will require the Partnership to, among other things, complete the sale of the Partnership’s Hardisty Rail Terminal on or before December 30, 2024. The Termination Date may be extended (i) to December 30, 2024, upon satisfaction of certain milestones in the sale process and (ii) to January 31, 2025, in the discretion of the administrative agent. The Forbearance Agreement also obligates the Partnership to adhere to an operating budget approved by the administrative agent and includes an obligation to repay borrowings with any cash on hand in excess of an agreed maximum.\n\n\nThe Hardisty Rail Terminal is underpinned by a long term take-or-pay contract to load DRU volumes with an investment grade customer. The DRU, which is owned jointly by Gibson Energy Inc. and US Development Group, LLC (“USDG”), the owner of the Partnership’s general partner, is not a part of the sale.\n\n\nAbout USD Partners LP\n\n\nUSD Partners LP is a fee-based master limited partnership formed in 2014 by USDG to acquire, develop and operate midstream infrastructure and complementary logistics solutions for crude oil, biofuels and other energy-related products. The Partnership generates substantially all of its operating cash flows from multi-year, take-or-pay contracts with primarily investment grade customers, including major integrated oil companies, refiners and marketers. The Partnership’s current operations include railcar loading, storage, and as well as other related logistics services. In addition, the Partnership provides customers with leas...