Item 1.01. Entry into a Material Definitive Agreement
On March 4, 2026, Genesis Energy, L.P. (“Genesis”) entered into an Eighth Amended and Restated Credit Agreement (the “New Credit Agreement”), among Genesis, as the borrower, Wells Fargo Bank, National Association, as administrative agent (in such capacity, the “Administrative Agent”) and issuing bank, Bank of America, N.A., as syndication agent, and the lenders and other parties party thereto. The New Credit Agreement replaces the Seventh Amended and Restated Credit Agreement, dated as of July 19, 2024 (as amended, the “Old Credit Agreement”), among Genesis, as borrower, the Administrative Agent and the other lenders party thereto.
The New Credit Agreement provides for a $900 million senior secured revolving facility with the ability to increase the aggregate size of the facility up to $1.3 billion in the form of additional revolving commitments or an incremental term loan, subject to lender consent and certain other customary conditions. The New Credit Agreement matures on March 4, 2031, subject to extension at the request of Genesis for one additional year on up to two occasions and subject to certain conditions; provided that (i) if more than $150 million of our 8.250% senior notes due 2029 remain outstanding on October 16, 2028, then the New Credit Agreement matures on such date and (ii) if more than $150 million of our 8.875% senior notes due 2030 remain outstanding on January 14, 2030, then the New Credit Agreement matures on such date. All borrowings under the New Credit Agreement bear interest, at our option, either at an alternate base rate or a Term SOFR rate. Interest on alternate base rate revolving borrowings is equal to the sum of (a) the greatest of (i) the prime rate established by the Administrative Agent, (ii) the federal funds effective rate plus 0.50% and (iii) Adjusted Term SOFR (as defined in the New Credit Agreement) for a one-month tenor plus 1% and (b) the applicable margin. Interest on Term SOFR revolving borrowings is equal to the sum of (a) Term SOFR (as defined in the New Credit Agreement) for the applicable interest period and (b) the applicable margin. The applicable margin for revolving loans varies from 1.25% to 2.50% for alternate base rate borrowings and from 2.25% to 3.50% for Term SOFR borrowings, depending on our leverage ratio. We are also required to pay a commitment fee that varies from 0.30% to 0.50% per annum, depending on our leverage ratio, on the unused revolving committed amount. The applicable margin for any incremental term loan will be as set forth in the definitive documentation related thereto.
The New Credit Agreement contains customary representations and warranties, affirmative and negative covenants and events of default similar to those in our Old Credit Agreement. In particular, covenants in the New Credit Agreement require us to meet certain financial metrics, including a maximum leverage ratio, a maximum senior secured leverage ratio, and a minimum interest coverage ratio. The New Credit Agreement is secured by a guarantee from substantially all of our Restricted Subsidiaries (as defined in the New Credit Agreement) and by liens on a substantial portion of our assets. Upon an event of default, the Administrative Agent, at the request of lenders holding greater than 50% of the credit exposure and unused committed amount under the New Credit Agreement, may accelerate the amounts due under the New Credit Agreement.
Certain of the lenders under the New Credit Agreement and their affiliates have provided and may continue to provide investment banking, commercial banking, financial services, or other services to Genesis and its affiliates. They have received, and may in the future receive, customary fees and commissions for their services.
Item 1.02. Termination of a Material Definitive Agreement.
In connection with our entry into the New Credit Agreement, we terminated the Old Credit Agreement. Proceeds from the New Credit Agreement were used to repay in full all amounts outstanding under the Old Credit Agreement.
Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The information set forth under Item 1.01 of this Current Report on Form 8-K is incorporated by reference into this Item 2.03.
