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Debt | 9 Months Ended
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Sep. 30, 2014
Debt Disclosure [Abstract] |
DEBT | DEBT Long-term debt and capital lease obligations at September 30, 2014 and December 31, 2013 are as follows:
| September 30, 2014 |  | December 31, 2013
In thousands | Current |  | Non-Current |  | Current |  | Non-Current
3.25% Convertible Senior Notes due 2028 | $ | 5,334 |  |  | $ | — |  |  | $ | — |  |  | $ | 5,334 |
7.875% Senior Notes due 2021 | — |  |  | 440,075 |  |  | — |  |  | 300,000 |
Capital lease obligations | 6,399 |  |  | 17,669 |  |  | 2,505 |  |  | 796 |
| $ | 11,733 |  |  | $ | 457,744 |  |  | $ | 2,505 |  |  | $ | 306,130 |
7.875% Senior Notes due 2021 During the three months ended September 30, 2014, the Company repurchased $12.6 million in aggregate principal amount of its 7.875% Senior Notes due 2021 (the "Senior Notes"), resulting in a balance of $437.4 million at September 30, 2014. On March 12, 2014, the Company completed a follow-on offering of $150 million in aggregate principal amount of its Senior Notes (the “Additional Notes”) in a private placement conducted pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as amended (the “Securities Act”). The Additional Notes constitute a further issuance of the Original Notes (as defined below) and form a single series of debt securities with the Original Notes. Upon completion of Coeur’s offering of the Additional Notes, the aggregate principal amount of the outstanding Senior Notes was $450 million. The Company commenced an exchange offer for the Additional Notes on April 10, 2014 to exchange the Additional Notes for freely transferable notes containing substantially similar terms, in accordance with the registration rights granted to the holders of the Additional Notes when they were issued. The exchange offer was consummated on May 9, 2014. On January 29, 2013, the Company completed an offering of $300 million in aggregate principal amount of 7.875% Senior Notes due 2021 (the “Original Notes”) in a private placement conducted pursuant to the Securities Act. The Company commenced an exchange offer for the Original Notes on September 30, 2013 to exchange the Original Notes for freely transferable notes containing substantially similar terms, in accordance with the registration rights granted to the holders of the Original Notes when they were issued. The exchange offer was consummated on November 5, 2013. 3.25% Convertible Senior Notes due 2028 Per the indenture governing the 3.25% Convertible Senior Notes due 2028 (the “Convertible Notes”), the Company announced on February 13, 2013 that it was offering to repurchase all of the Convertible Notes. As of February 12, 2013, there was $48.7 million aggregate principal amount of Convertible Notes outstanding. The Company repurchased $43.3 million in aggregate principal amount, leaving a balance of $5.3 million at September 30, 2014. The Convertible Notes are classified as current liabilities at September 30, 2014 as a result of the holders' option to require the Company to repurchase the notes on March 15, 2015. Revolving Credit Facility On August 1, 2012, Coeur Alaska, Inc. and Coeur Rochester, Inc. (the “Borrowers”), each a wholly-owned subsidiary of the Company, entered into a Credit Agreement (as subsequently amended on January 16, 2014, the “Credit Agreement”) by and among the Company, the Borrowers, the lenders party thereto and Wells Fargo Bank, N.A., as administrative agent. The Credit Agreement provided for a senior secured revolving credit facility (the “Revolving Credit Facility”) in an aggregate principal amount of up to $100.0 million, which principal amount may be increased, subject to receiving additional commitments therefor, by up to $50.0 million. On March 20, 2014, the Borrowers notified the administrative agent that they were terminating the Revolving Credit Facility, effective March 25, 2014. The Company wrote off $3.0 million related to the termination of the Credit Agreement in the nine months ended September 30, 2014. No amounts were outstanding under the Revolving Credit Facility at the time of termination, and no early termination penalty was payable in connection with the termination. Lines of Credit At September 30, 2014, San Bartolomé had two outstanding lines of credit supporting value added tax recoveries in Bolivia. One line is for $7.0 million bearing interest at 2.75% per annum and the other line is for $4.0 million bearing interest at 3.0% per annum. There is no balance outstanding on the two lines of credit at September 30, 2014 and 2013, respectively. Palmarejo Gold Production Royalty Obligation On January 21, 2009, Coeur Mexicana entered into a gold production royalty transaction with a subsidiary of Franco-Nevada Corporation under which the subsidiary of Franco-Nevada Corporation purchased a royalty covering 50% of the life of mine gold to be produced from its Palmarejo silver and gold mine in Mexico. The royalty agreement provides for a minimum obligation to be paid monthly on a total of 400,000 ounces of gold, or 4,167 ounces per month over an initial eight year period. Each monthly payment is an amount equal to the greater of 4,167 ounces of gold or 50% of actual gold production multiplied by the excess of the monthly average market price of gold above $408 per ounce, subject to a 1% annual inflation compounding adjustment. Payments under the royalty agreement are made in cash or gold bullion. During the three months ended September 30, 2014 and 2013, the Company paid $11.4 million and $12.6 million, respectively, and the Company paid $38.4 million and $43.5 million during the nine months ended September 30, 2014 and 2013, respectively. At September 30, 2014, payments had been made on a total of 302,584 ounces of gold with further payments to be made on an additional 97,416 ounces of gold. On October 2, 2014, Coeur Mexicana terminated the Palmarejo gold production royalty in exchange for a termination payment of $2.0 million, effective upon completion of the minimum ounce delivery requirement. Subsequently, Coeur Mexicana entered into a gold stream agreement with a subsidiary of Franco-Nevada Corporation whereby Coeur Mexicana will sell 50% of Palmarejo gold production upon completion of the gold production royalty minimum ounce delivery requirement for the lesser of $800 or spot price per ounce. Under the gold stream agreement, Coeur Mexicana will receive an aggregate $22.0 million deposit toward future deliveries under the gold stream agreement, payable in five quarterly payments beginning in the first quarter 2015. The Company used an implicit interest rate of 30.5% to discount the original royalty obligation, based on the fair value of the consideration received projected over the expected future cash flows at inception of the obligation. The discounted obligation is accreted to its expected future value over the expected minimum payment period based on the implicit interest rate. The Company recognized accretion expense for the three months ended September 30, 2014 and 2013 of $2.5 million and $4.0 million, respectively, and $8.6 million and $12.2 million for the nine months ended September 30, 2014 and 2013, respectively. At September 30, 2014 and December 31, 2013, the remaining minimum obligation under the royalty agreement was $38.1 million and $51.2 million, respectively. Interest Expense Interest expense consists of the following:
| Three months ended September 30, |  | Nine months ended September 30,
In thousands | 2014 |  | 2013 |  | 2014 |  | 2013
3.25% Convertible Senior Notes due 2028 | $ | 43 |  |  | $ | 43 |  |  | $ | 130 |  |  | $ | 423 |
7.875% Senior Notes due 2021 | 8,809 |  |  | 5,906 |  |  | 24,132 |  |  | 15,947 |
Revolving Credit Facility | — |  |  | 176 |  |  | 179 |  |  | 434 |
Loss on Revolving Credit Facility | — |  |  | — |  |  | 3,035 |  |  | — |
Capital lease obligations | 334 |  |  | 89 |  |  | 726 |  |  | 355 |
Other debt obligations | — |  |  | 18 |  |  | — |  |  | 287 |
Accretion of Palmarejo gold production royalty obligation | 2,545 |  |  | 4,023 |  |  | 8,639 |  |  | 12,192 |
Amortization of debt issuance costs | 415 |  |  | 540 |  |  | 1,333 |  |  | 1,604 |
Accretion of debt (premium) discount | (107 | ) |  | — |  |  | (252 | ) |  | 576 |
Capitalized interest | (423 | ) |  | (1,133 | ) |  | (942 | ) |  | (1,494 | )
Total interest expense, net of capitalized interest | $ | 11,616 |  |  | $ | 9,662 |  |  | $ | 36,980 |  |  | $ | 30,324 |

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- Definition The entire disclosure for debt and capital lease obligations can be reported. Information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. Also includes descriptions and amounts of capital leasing arrangements that consist of direct financing, sales type and leveraged leases. Disclosure may include the effect on the balance sheet and the income statement resulting from a change in lease classification for leases that at inception would have been classified differently had guidance been in effect at the inception of the original lease. + References No definition available. + Details
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