NOTE 11-FINANCING:

Long-term debt:

In the second quarter of 2015, the Company adopted ASU 2015-03 and it was applied on a retrospective basis. As a consequence, the December 31, 2014 balance sheet has been modified to reflect this presentation, as follows:

	Face amount		Issuance discount			Issuance costs			Carrying value as of December 31, 2015
5.375% Senior unsecured notes due 2020	$	400	$	(1.0	)	$	(1.1	)	$	397.9
3.500% Senior unsecured notes due 2022	300		(0.7		)	(1.1		)	298.2
3.875% Senior unsecured notes due 2025	500		(2.6		)	(2.4		)	495.0
9.250% Yankee Bonds due 2028	125		—			—			51.1
7.500% Senior unsecured notes due 2035	1,000		(14.0		)	(9.1		)	976.9
6.750% Senior unsecured notes due 2040	1,100		(7.7		)	(6.1		)	1,086.2
5.250% Senior unsecured notes due 2042	1,200		(20.5		)	(6.8		)	1,172.7
5.875% Senior unsecured notes due 2045	1,500		(17.3		)	(9.2		)	1,473.5

Total	$	6,125	$	(63.8	)	$	(35.8	)	5,951.5

Less, current portion									—

Total long-term debt									$	5,951.5

	Face amount		Issuance discount			Carrying value before adoption of ASU 2015-03			Issuance costs			Restated carrying value as of December 31, 2014
6.375% Senior unsecured notes due 2015	$	200	$	(0.2	)	$	199.8		$	(0.2	)	$	199.6
5.375% Senior unsecured notes due 2020	400		(1.2		)	398.8			(1.3		)	397.5
3.500% Senior unsecured notes due 2022	300		(0.8		)	299.2			(1.2		)	298.0
9.250% Yankee Bonds due 2028	125		—			51.1			—			51.1
7.500% Senior unsecured notes due 2035	1,000		(14.2		)	985.8			(9.3		)	976.5
6.750% Senior unsecured notes due 2040	1,100		(7.8		)	1,092.2			(6.2		)	1,086.0
5.250% Senior unsecured notes due 2042	1,200		(20.9		)	1,179.1			(6.9		)	1,172.2

Total	$	4,325	$	(45.1	)	4,206.0			$	(25.1	)	4,180.9

Less, current portion						(200.0		)				(200.0		)

Total long-term debt						$	4,006.0					$	3,980.9

The bonds, referred above as “Yankee bonds”, contain a covenant requiring Minera Mexico to maintain a ratio of EBITDA to interest expense of not less than 2.5 to 1.0 as such terms are defined in the debt instrument. At December 31, 2015, Minera Mexico was in compliance with this covenant.

Between July 2005 and November 2012 the Company issued senior unsecured notes six times totaling $4.2 billion as listed above. Interest on the notes is paid semi-annually in arrears. The notes rank pari passu with each other and rank pari passu in right of payment with all of the Company’s other existing and future unsecured and unsubordinated indebtedness.

On April 20, 2015, the Company issued $2.0 billion of fixed-rate senior unsecured notes. This debt was issued in two tranches, $500 million due 2025 at an annual interest rate of 3.875% and $1.5 billion due 2045 at an annual interest rate of 5.875%. These notes will be general unsecured obligations of the Company and will rank equally with all of its existing and future unsecured and unsubordinated debt. Net proceeds will be used for general corporate purposes, including the financing of the Company´s capital investment program. The notes were issued with an underwriters’ discount of $20.2 million. Additionally, issuance costs of $9.6 million associated with these notes were paid and deferred. The unamortized balance of the discount and the costs are presented net of the carrying value of the debt issued and are amortized as interest expense over the life of the loan.

The indentures relating to the notes contain certain restrictive covenants, including limitations on liens, limitations on sale and leaseback transactions, rights of the holders of the notes upon the occurrence of a change of control triggering event, limitations on subsidiary indebtedness and limitations on consolidations, mergers, sales or conveyances. Certain of these covenants cease to be applicable before the notes mature if the Company obtains an investment grade rating. The Company obtained investment grade rating in 2005. The Company has registered these notes under the Securities Act of 1933, as amended. The Company may issue additional debt from time to time pursuant to certain of the indentures.

If the Company experiences a “Change of Control Triggering Event”, the Company must offer to repurchase the notes at a purchase price equal to 101% of the principal amount thereof, plus accrued and unpaid interest, if any. A Change of Control Trigger Event means a Change of Control (as defined) and a rating decline (as defined), that is, if the rating of the notes, by at least one of the rating agencies shall be decreased by one or more gradations.

At December 31, 2015, the Company was in compliance with the covenants of the notes.

Aggregate maturities of the outstanding borrowings at December 31, 2015, are as follows:

Years	Principal Due (*)
	(in millions)
2016	$	—
2017	—
2018	—
2019	—
Thereafter	6,051.2

Total	$	6,051.2

(*)Total debt maturities do not include the debt discount valuation account of $99.6 million.