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Debt | 9 Months Ended
--- | ---
Sep. 30, 2016
Debt Disclosure [Abstract] |
DEBT | DEBT
| September 30, 2016 |  | December 31, 2015
In thousands | Current |  | Non-Current |  | Current |  | Non-Current
3.25% Convertible Senior Notes due 2028 | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 712 |
7.875% Senior Notes due 2021, net(1) | — |  |  | 363,596 |  |  | — |  |  | 373,433 |
Term Loan due 2020, net(2) | — |  |  | — |  |  | 1,000 |  |  | 93,489 |
San Bartolomé Lines of Credit | — |  |  | — |  |  | — |  |  | 4,571 |
Capital lease obligations | 12,512 |  |  | 25,637 |  |  | 9,431 |  |  | 7,774 |
| $ | 12,512 |  |  | $ | 389,233 |  |  | $ | 10,431 |  |  | $ | 479,979 |
(1) Net of unamortized debt issuance costs and premium received of $4.4 million and $5.3 million at September 30, 2016 and December 31, 2015, respectively. (2) Net of unamortized debt issuance costs of $5.0 million at December 31, 2015. 7.875% Senior Notes due 2021 During the third quarter of 2016, the Company entered into two privately-negotiated agreements to exchange $10.8 million in aggregate principal amount of its Senior Notes for 0.7 million shares of common stock. Based on the closing price of the Company's common stock on the date of the exchange, the exchange resulted in a loss of $1.2 million which is recognized in Other, net in the Company's Condensed Consolidated Statement of Comprehensive Income (Loss). 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 During the third quarter of 2016, all outstanding Convertible Notes were redeemed for $0.7 million. Term Loan due 2020 On July 15, 2016, the Company voluntarily terminated and repaid the Term Loan for $103.4 million including the $99.0 million remaining principal balance and a $4.4 million prepayment premium. The termination of the Term Loan resulted in a loss of $8.8 million which is recognized in Other, net in the Company's Condensed Consolidated Statement of Comprehensive Income (Loss). On June 23, 2015, the Company and certain of its subsidiaries entered into a credit agreement for the Term Loan with Barclays Bank PLC, as administrative agent (the “Term Loan Credit Agreement”). The Term Loan Credit Agreement provided 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 were used for general corporate purposes. The obligations under the Term Loan were 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. Lines of Credit San Bartolomé has two available lines of credit for an aggregate amount of $27.0 million, both of which were undrawn at September 30, 2016. 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. 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. Capital Lease Obligations From time to time, the Company acquires mining equipment under capital lease agreements. During the nine months ended September 30, 2016, the Company entered into new lease financing arrangements primarily for a larger haul truck fleet at its Rochester mine and mining equipment to support the continued underground mine expansion at the Palmarejo complex. All capital lease obligations are recorded, upon lease inception, at the present value of future minimum lease payments. 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 the Palmarejo silver and gold mine in Mexico. 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 (the “Gold Stream Agreement”) with a subsidiary of Franco-Nevada Corporation whereby Coeur Mexicana will sell 50% of Palmarejo gold production (excluding production from the recently acquired Paramount properties) effective upon completion of the gold production royalty minimum ounce delivery requirement. In July 2016, the remaining minimum obligation under the Palmarejo royalty agreement was satisfied and the termination of the Palmarejo royalty agreement became effective. The royalty agreement provided 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 was 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 $416 per ounce, subject to a 1% annual inflation compounding adjustment. Payments under the royalty agreement were made in cash or gold bullion. During the three months ended September 30, 2016 and 2015, the Company paid $7.6 million and $10.2 million, respectively and the Company paid $27.2 million and $30.3 million during the nine months ended September 30, 2016 and 2015, respectively. The Company recognized accretion expense for the three months ended September 30, 2016 and 2015 of $0.0 million and $1.6 million, respectively, and $1.2 million and $5.4 million for the nine months ended September 30, 2016 and 2015, respectively. Following the completion of the minimum ounce obligation and the effective termination of the Palmarejo royalty agreement in July 2016, Coeur Mexicana began selling 50% of the Palmarejo gold production (excluding production from the recently acquired Paramount properties) for the lesser of $800 or spot price per ounce under the Gold Stream Agreement. Interest Expense
| Three months ended September 30, |  | Nine months ended September 30,
In thousands | 2016 |  | 2015 |  | 2016 |  | 2015
3.25% Convertible Senior Notes due 2028 | $ | 2 |  |  | $ | 6 |  |  | $ | 13 |  |  | $ | 49 |
7.875% Senior Notes due 2021 | 7,337 |  |  | 8,523 |  |  | 22,250 |  |  | 25,608 |
Short-term Loan | — |  |  | — |  |  | — |  |  | 326 |
Term Loan due 2020 | 417 |  |  | 2,277 |  |  | 4,939 |  |  | 2,425 |
San Bartolomé Lines of Credit | — |  |  | 101 |  |  | 15 |  |  | 665 |
Capital lease obligations | 399 |  |  | 229 |  |  | 1,079 |  |  | 799 |
Other debt obligations | 38 |  |  | 8 |  |  | 67 |  |  | 8 |
Accretion of Palmarejo gold production royalty obligation | 49 |  |  | 1,642 |  |  | 1,211 |  |  | 5,444 |
Amortization of debt issuance costs | 388 |  |  | 690 |  |  | 1,650 |  |  | 1,604 |
Accretion of debt premium | (90 | ) |  | (104 | ) |  | (272 | ) |  | (313 | )
Capitalized interest | (472 | ) |  | (926 | ) |  | (889 | ) |  | (2,670 | )
Total interest expense, net of capitalized interest | $ | 8,068 |  |  | $ | 12,446 |  |  | $ | 30,063 |  |  | $ | 33,945 |

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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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