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Debt & Covenants

February 2026

2019 Second Lien DSCR: 1.31x — 4.8% above 1.25x minimum covenant

Declining trajectory over 4 quarters. Review forecasting page for mitigation options.

InstrumentTypeOutstandingMaturityCouponDSCRStatus
2018 First Lien Revenue BondsRevenue Bond$420M20484.25%1.92x
2019 Second Lien Revenue BondsRevenue Bond$180M20394.75%1.31x
2021 Subordinate Lien NotesSub Lien$245M20413.85%2.14x
2022 GO Bonds (Series A)GO Bond$125M20423.50%3.24x
2023 Revenue RefundingRevenue Bond$148M20434.00%1.88x
TIFIA Loan (Ship Channel)Federal Loan$85M20502.75%2.42x
TWDB Clean Water SRFState Loan$37M20351.50%4.86x
Total Outstanding$1.24B

Team Discussion

4
PC
Priya ChakrabartiMar 2, 2:00 PM

Treasury Analyst

DSCR at 1.52x -- above 1.25x covenant minimum but trending down from 1.68x last quarter. @Diana Reeves @Marcus Tran flagging for discussion.

MT
Marcus TranMar 2, 3:30 PM

Sr. Financial Analyst

The decline is mostly timing -- Q1 debt service is front-loaded. Should normalize by Q2. But if container volume softens we could get close to 1.35x.

DR
Diana ReevesMar 2, 4:15 PM

CFO

Action Required

Let's add a sensitivity analysis to the board package showing DSCR at -5%, -10%, -15% volume scenarios.

PC
Priya ChakrabartiMar 3, 10:00 AM

Treasury Analyst

Sensitivity added to the forecasting page. Worst case (-15% volume) puts us at 1.31x -- still above minimum but worth monitoring.

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