XML 60 R24.htm IDEA: XBRL DOCUMENT
v3.3.0.814

Debt | 9 Months Ended
--- | ---
Sep. 30, 2015
Debt Disclosure [Abstract] |
DEBT | DEBT Long-term debt and capital lease obligations at September 30, 2015 and December 31, 2014 are as follows:
| September 30, 2015 |  | December 31, 2014
In thousands | Current |  | Non-Current |  | Current |  | Non-Current
3.25% Convertible Senior Notes due 2028 | $ | — |  |  | $ | 712 |  |  | $ | 5,334 |  |  | $ | — |
7.875% Senior Notes due 2021, net(1) | — |  |  | 426,533 |  |  | — |  |  | 427,603 |
Term Loan due 2020, net(2) | 1,000 |  |  | 93,557 |  |  | — |  |  | — |
San Bartolomé Lines of Credit | 1,723 |  |  | 7,419 |  |  | 4,481 |  |  | 10,304 |
Capital lease obligations | 9,052 |  |  | 5,990 |  |  | 7,683 |  |  | 13,141 |
| $ | 11,775 |  |  | $ | 534,211 |  |  | $ | 17,498 |  |  | $ | 451,048 |
(1) Net of unamortized debt issuance costs and premium received of $6.4 million and $7.3 million at September 30, 2015 and December 31, 2014, respectively. (2) Net of unamortized debt issuance costs of $5.2 million at September 30, 2015. 7.875% Senior Notes due 2021 During the first quarter of 2015, the Company repurchased $2.0 million in aggregate principal amount of the Senior Notes, resulting in an aggregate principal balance outstanding of $432.9 million at September 30, 2015. At any time prior to February 1, 2016, the Company may use the proceeds of certain equity offerings to redeem up to 35% of the aggregate principal amount of the Notes, including any permitted additional Notes, at a redemption price equal to 107.875% of the principal amount. At any time prior to February 1, 2017, the Company may redeem all or part of the Senior Notes upon not less than 30 nor more than 60 days’ prior notice at a redemption price equal to the sum of 100% of the principal amount thereof, a make-whole premium as of the date of redemption, and accrued and unpaid interest and additional interest, if any, thereon, to the date of redemption. In addition, the Company may redeem some or all of the Senior Notes on or after February 1, 2017, at redemption prices set forth in the Indenture for the Senior Notes, together with accrued and unpaid interest. 3.25% Convertible Senior Notes due 2028 Per the indenture governing the Convertible Notes, the Company announced on February 12, 2015 that it was offering to repurchase all of the Convertible Notes. During the first quarter of 2015, the Company repurchased $4.6 million in aggregate principal amount, leaving a balance of $0.7 million at September 30, 2015. The Convertible Notes are classified as non-current liabilities at September 30, 2015 as a result of the expiration of the holders' option to require the Company to repurchase the notes on March 15, 2015. Short-term Loan On March 31, 2015, the Company entered into a credit agreement (the "Short-term Credit Agreement") with The Bank of Nova Scotia. The Short-term Credit Agreement provided for a $50.0 million loan (the "Short-term Loan") to the Company. The Short-term Loan generally bore interest at a rate equal to an adjusted Eurocurrency rate plus a margin of 2.50%. On June 25, 2015, the Short-term Loan was repaid in full, the security for the Short-term Loan was released, and the Short-term Credit Agreement was terminated. Term Loan due 2020 On June 23, 2015, the Company and certain of its subsidiaries entered into a five year Credit Agreement for a senior secured term loan (the "Term Loan") with Barclays Bank PLC, as administrative agent (the “Term Loan Credit Agreement”). The Term Loan Credit Agreement provides for a five year $100.0 million term loan to the Company, of which a portion of the proceeds were used to repay the Short-term Loan, and the remaining proceeds are expected to be used for general corporate purposes. The Term Loan contains no financial maintenance covenants and currently bears interest at a rate equal to an adjusted Eurodollar rate plus a margin of 8.00% (at no time will the adjusted Eurodollar rate be deemed to be less than 1.00% per annum). Voluntary prepayments of the Term Loan under the Term Loan Credit Agreement are permitted, subject to the payment of a make-whole premium if such prepayment occurs prior to the first anniversary of the closing date, a premium of 105.0% of the principal amount between the first anniversary and the second anniversary of the closing date and a premium of 103.0% if such prepayment occurs on or after the second anniversary but prior to the third anniversary of the closing date. The Term Loan Credit Agreement requires amortization payments equal to 1.0% of the principal amount of the Term Loan per annum and also requires net cash proceeds of debt issuances, excess cash flow, asset sales and casualty insurance recoveries (in each case, subject to certain exceptions) to either be reinvested in long-term assets used in the Company’s business or be applied as a mandatory prepayment of the Term Loan. Amounts repaid on the Term Loan may not be re-borrowed. The obligations under the Term Loan are secured by substantially all of the assets of the Company and its domestic subsidiaries, including the land, mineral rights and infrastructure at the Kensington, Rochester and Wharf mines, as well as a pledge of the shares of certain of the Company's subsidiaries. The Term Loan Credit Agreement contains customary representations and warranties, events of default, and affirmative and negative covenants. Lines of Credit At September 30, 2015, San Bartolomé had two outstanding lines of credit. The first line of credit is for $12.0 million bearing interest at 6.0% per annum, maturing June 30, 2018. The second line of credit is for $15.0 million bearing interest at 6.0% per annum, maturing December 29, 2016. Both lines of credit are secured with machinery and equipment. There was an outstanding balance of $9.1 million on the second line of credit at September 30, 2015. 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 (excluding production from the recently acquired Paramount properties). 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 $412 per ounce, subject to a 1% annual inflation compounding adjustment. Payments under the royalty agreement are made in cash or gold bullion. The Company paid $10.2 million and $11.4 million in the three months ended and $30.3 million and $38.4 million during the nine months ended September 30, 2015 and 2014, respectively. At September 30, 2015, payments had been made on a total of 354,004 ounces of gold with further payments to be made on an additional 45,996 ounces of gold. 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 of $1.6 million and $2.5 million for the three months ended and $5.4 million and $8.6 million for the nine months ended September 30, 2015 and 2014, respectively. At September 30, 2015 and December 31, 2014, the remaining minimum obligation under the royalty agreement was $20.3 million and $34.0 million, respectively. Interest Expense Interest expense consists of the following:
| Three months ended September 30, |  | Nine months ended September 30,
In thousands | 2015 |  | 2014 |  | 2015 |  | 2014
3.25% Convertible Senior Notes due 2028 | $ | 6 |  |  | $ | 43 |  |  | $ | 49 |  |  | $ | 130 |
7.875% Senior Notes due 2021 | 8,523 |  |  | 8,809 |  |  | 25,608 |  |  | 24,132 |
Short-term Loan | — |  |  | — |  |  | 326 |  |  | — |
Term Loan due 2020 | 2,277 |  |  | — |  |  | 2,425 |  |  | — |
San Bartolomé Lines of Credit | 101 |  |  | — |  |  | 665 |  |  | — |
Revolving Credit Facility | — |  |  | — |  |  | — |  |  | 179 |
Loss on Revolving Credit Facility | — |  |  | — |  |  | — |  |  | 3,035 |
Capital lease obligations | 229 |  |  | 334 |  |  | 799 |  |  | 726 |
Other debt obligations | 8 |  |  | — |  |  | 8 |  |  | — |
Accretion of Palmarejo gold production royalty obligation | 1,642 |  |  | 2,545 |  |  | 5,444 |  |  | 8,639 |
Amortization of debt issuance costs | 690 |  |  | 415 |  |  | 1,604 |  |  | 1,333 |
Accretion of debt premium | (104 | ) |  | (107 | ) |  | (313 | ) |  | (252 | )
Capitalized interest | (926 | ) |  | (423 | ) |  | (2,670 | ) |  | (942 | )
Total interest expense, net of capitalized interest | $ | 12,446 |  |  | $ | 11,616 |  |  | $ | 33,945 |  |  | $ | 36,980 |

X
- 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
Name: | us-gaap_DebtAndCapitalLeasesDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DebtDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration