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LONG-TERM DEBT AND CREDIT FACILITIES

12 Months Ended

Dec. 31, 2021

LONG-TERM DEBT AND CREDIT FACILITIES

12. LONG-TERM DEBT AND CREDIT FACILITIES


		December 31, 2021								December 31, 2020
				Deferred
		Nominal		Financing		Carrying		Fair		Carrying		Fair
	Interest Rates	Amount		Costs		Amount ^(a)		Value ^(b)		Amount ^(a)		Value ^(b)

Senior notes	(i) 4.50%-6.875%	$	1,248.2	$	(6.3)	$	1,241.9	$	1,432.7	$	1,739.8	$	1,999.5
Revolving credit facility	(ii) LIBOR plus 1.45%		200.0		—	$	200.0		200.0		—		—
Tasiast loan	(iii) LIBOR plus 4.380%		200.0		(12.0)	$	188.0		200.0		184.1		200.0
Total long-term and current debt		$	1,648.2	$	(18.3)	$	1,629.9	$	1,832.7	$	1,923.9	$	2,199.5
Less: current portion			(40.0)		—		(40.0)		—		(499.7)		(509.3)
Long-term debt and credit facility		$	1,608.2	$	(18.3)	$	1,589.9	$	1,832.7	$	1,424.2	$	1,690.2

(a)	Includes transaction costs on senior notes and Tasiast loan financings.

(b)	The fair value of senior notes is primarily determined using quoted market determined variables. See Note 10(c).

Scheduled debt repayments


											2027 and
	2022		2023		2024		2025		2026		thereafter		Total
Senior notes	$	—	$	—	$	500.0	$	—	$	—	$	750.0	$	1,250.0
Revolving credit facility		—		—		—		—		200.0		—		200.0
Tasiast loan		40.0		36.0		32.0		4.0		16.0		72.0		200.0
Total debt payable	$	40.0	$	36.0	$	532.0	$	4.0	$	216.0	$	822.0	$	1,650.0

(i) Senior notes

The Company’s $1,250.0 million of senior notes consist of $500.0 million principal amount of 5.950% notes due in 2024, $500.0 million principal amount of 4.50% notes due in 2027 and $250.0 million principal amount of 6.875% notes due in 2041.

On June 1, 2021, the Company redeemed all outstanding 5.125% senior notes due September 1, 2021, which had an aggregate principal amount of $500.0 million. These notes were redeemed at a redemption price equal to their principal amount outstanding plus accrued and unpaid interest of $6.4 million.

The senior notes (collectively, the “notes”) pay interest semi-annually. Except as noted below, the notes are redeemable by the Company, in whole or part, for cash at any time prior to maturity, at a redemption price equal to the greater of 100% of the principal amount or the sum of the present value of the remaining scheduled principal and interest payments on the notes discounted at the applicable treasury rate, as defined in the indentures, plus a premium of between 45 and 50 basis points, plus accrued interest, if any. Within three months of maturity of the notes due in 2024 and 2027, and within six months of maturity of the notes due in 2041, the Company can only redeem the notes in whole at 100% of the principal amount plus accrued interest, if any. In addition, the Company is required to make an offer to repurchase the notes prior to maturity upon certain fundamental changes at a repurchase price equal to 101% of the principal amount of the notes plus accrued and unpaid interest to the repurchase date, if any.

(ii) Revolving credit facility

On July 23, 2021, the Company amended its $1,500.0 million revolving credit facility to extend the maturity date to July 23, 2026.

As at December 31, 2021, the Company had utilized $206.5 million (December 31, 2020 - $7.5 million) of its $1,500.0 million revolving credit facility, of which $6.5 million was used for letters of credit. In 2021, the Company drew down $200.0 million on the revolving credit facility. Subsequent to December 31, 2021, the Company drew $1,100.0 million on the revolving credit facility.

Loan interest on the revolving credit facility is variable, set at LIBOR plus an interest rate margin, which is dependent on the Company’s credit rating. Based on the Company’s credit rating at December 31, 2021, interest charges and fees are as follows:

a
Type of credit
Revolving credit facility	LIBOR plus		1.45	%
Letters of credit	0.967	-	1.45	%
Standby fee applicable to unused availability			0.290	%

The revolving credit facility’s credit agreement contains various covenants including limits on indebtedness, asset sales and liens. The Company was in compliance with its financial covenant in the credit agreement at December 31, 2021.

(iii) Tasiast loan

On December 16, 2019, the Company completed a definitive loan agreement for up to $300.0 million for Tasiast, with the first drawdown of $200.0 million received on April 9, 2020. On December 15, 2021, the agreement was amended to cancel the remaining $100.0 million available to be drawn.

The asset recourse loan has a term of eight years, maturing in December 2027, a floating interest rate of LIBOR plus a weighted average margin of 4.38% and a standby fee applicable to unused availability of 1.60%, with semi-annual interest and principal payments to be made in June and December for the term of the loan. Principal repayments of $20.0 million are due in June and December 2022.

As at December 31, 2021, the Company held $25.0 million in a separate bank account as required under the Tasiast loan agreement. This cash, which is subject to fluctuations over time depending on the next scheduled principal and interest payments, is required to remain in the bank account for the duration of the loan and is therefore recorded as restricted cash in other long-term assets. See Note 7viii.

(iv) Other

The Company has a $300.0 million Letter of Credit guarantee facility with Export Development Canada (“EDC”) with a maturity date of June 30, 2022. Total fees related to letters of credit under this facility were 0.75% of the utilized amount. As at December 31, 2021, $232.3 million (December 31, 2020 - $228.9 million) was utilized under this facility.

In addition, at December 31, 2021, the Company had $180.8 million (December 31, 2020 - $175.6 million) in letters of credit and surety bonds outstanding in respect of its operations in Brazil, Mauritania, Ghana and Chile. These have been issued pursuant to arrangements with certain international banks and incur average fees of 0.80%.

As at December 31, 2021, $308.2 million (December 31, 2020 - $290.1 million) of surety bonds were outstanding with respect to Kinross’ properties in the United States. These surety bonds were issued pursuant to arrangements with international insurance companies and incur fees of 0.50%.

(v) Changes in liabilities arising from financing activities


	Long-term debt		Lease		Accrued interest
	and credit facilities		liabilities		payable^(a)		Total
Balance as at January 1, 2021	$	1,923.9	$	74.7	$	33.7	$	2,032.3
Changes from financing cash flows
Debt issued		200.0		—		—		200.0
Debt repayments		(500.0)		—		—		(500.0)
Interest paid		—		—		(46.9)		(46.9)
Payment of lease liabilities		—		(33.8)		—		(33.8)
		1,623.9		40.9		(13.2)		1,651.6
Other changes
Interest expense and accretion	$	—	$	3.8	$	67.7	$	71.5
Capitalized interest		—		—		48.3		48.3
Capitalized interest paid		—		—		(51.1)		(51.1)
Additions of lease liabilities		—		10.2		—		10.2
Other		6.0		(0.1)		(26.4)		(20.5)
		6.0		13.9		38.5		58.4
Balance as at December 31, 2021	$	1,629.9	$	54.8	$	25.3	$	1,710.0

(a)	Included in Accounts payable and accrued liabilities.


	Long-term debt		Lease		Accrued interest
	and credit facilities		liabilities		payable ^(a)		Total
Balance as at January 1, 2020	$	1,837.4	$	54.9	$	33.3	$	1,925.6
Changes from financing cash flows
Debt issued		950.0		—		—		950.0
Debt repayments		(850.0)		—		—		(850.0)
Interest paid		—		—		(63.1)		(63.1)
Payment of lease liabilities		—		(20.7)		—		(20.7)
		1,937.4		34.2		(29.8)		1,941.8
Other changes
Interest expense and accretion	$	—	$	3.0	$	86.6	$	89.6
Capitalized interest		—		—		49.1		49.1
Capitalized interest paid		—		—		(47.9)		(47.9)
Additions of lease liabilities		—		38.2		—		38.2
Other		(13.5)		(0.7)		(24.3)		(38.5)
		(13.5)		40.5		63.5		90.5
Balance as at December 31, 2020	$	1,923.9	$	74.7	$	33.7	$	2,032.3

(a)	Included in Accounts payable and accrued liabilities.