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DEBT AND CREDIT FACILITIES | 9 Months Ended
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Sep. 30, 2016
Debt Disclosure [Abstract] |
DEBT AND CREDIT FACILITIES | NOTE 5 - DEBT AND CREDIT FACILITIES The following represents a summary of our long-term debt as of September 30, 2016 and December 31, 2015:
($ in Millions) |
September 30, 2016 |
Debt Instrument |  | Annual Effective Interest Rate |  | Total Principal Amount |  | Debt Issuance Costs |  | Undiscounted Interest/(Unamortized Discounts) |  | Total Debt |
$700 Million 4.875% 2021 Senior Notes |  | 4.89% |  | $ | 325.7 |  |  | $ | (1.2 | ) |  | $ | (0.2 | ) |  | $ | 324.3 |  | (1)
$1.3 Billion Senior Notes: |  |  |  |  |  |  |  |  |  |  |
$500 Million 4.80% 2020 Senior Notes |  | 4.83% |  | 244.8 |  |  | (0.7 | ) |  | (0.2 | ) |  | 243.9 |  | (2)
$800 Million 6.25% 2040 Senior Notes |  | 6.34% |  | 298.4 |  |  | (2.5 | ) |  | (3.4 | ) |  | 292.5 |  | (3)
$400 Million 5.90% 2020 Senior Notes |  | 5.98% |  | 225.6 |  |  | (0.7 | ) |  | (0.5 | ) |  | 224.4 |  | (4)
$500 Million 3.95% 2018 Senior Notes |  | 6.15% |  | — |  |  | — |  |  | — |  |  | — |  | (5)
$540 Million 8.25% 2020 First Lien Notes |  | 9.97% |  | 540.0 |  |  | (8.6 | ) |  | (27.4 | ) |  | 504.0 |  |
$218.5 Million 8.00% 2020 1.5 Lien Notes |  | N/A |  | 218.5 |  |  | — |  |  | 70.0 |  |  | 288.5 |  | (6)
$544.2 Million 7.75% 2020 Second Lien Notes |  | 15.55% |  | 430.1 |  |  | (6.2 | ) |  | (90.1 | ) |  | 333.8 |  | (7)
$550 Million ABL Facility: |  |  |  |  |  |  |  |  |  |  |
ABL Facility |  | N/A |  | 550.0 |  |  | N/A |  |  | N/A |  |  | — |  | (8)
Fair Value Adjustment to Interest Rate Hedge |  |  |  |  |  |  |  |  |  | 2.0 |  |
Total debt |  |  |  | $ | 2,833.1 |  |  |  |  |  |  | $ | 2,213.4 |  |
Less: Current portion |  |  |  |  |  |  |  |  |  | 17.5 |  |
Long-term debt |  |  |  |  |  |  |  |  |  | $ | 2,195.9 |  |
($ in Millions) |
December 31, 2015 |
Debt Instrument |  | Annual Effective Interest Rate |  | Total Principal Amount |  | Debt Issuance Costs |  | Unamortized Discounts |  | Total Debt |
$700 Million 4.875% 2021 Senior Notes |  | 4.89% |  | $ | 412.5 |  |  | $ | (1.7 | ) |  | $ | (0.2 | ) |  | $ | 410.6 |  |
$1.3 Billion Senior Notes: |  |  |  |  |  |  |  |  |  |  |
$500 Million 4.80% 2020 Senior Notes |  | 4.83% |  | 306.7 |  |  | (1.1 | ) |  | (0.4 | ) |  | 305.2 |  |
$800 Million 6.25% 2040 Senior Notes |  | 6.34% |  | 492.8 |  |  | (4.3 | ) |  | (5.8 | ) |  | 482.7 |  |
$400 Million 5.90% 2020 Senior Notes |  | 5.98% |  | 290.8 |  |  | (1.1 | ) |  | (0.8 | ) |  | 288.9 |  |
$500 Million 3.95% 2018 Senior Notes |  | 6.30% |  | 311.2 |  |  | (0.9 | ) |  | (1.2 | ) |  | 309.1 |  |
$540 Million 8.25% 2020 First Lien Notes |  | 9.97% |  | 540.0 |  |  | (10.5 | ) |  | (32.1 | ) |  | 497.4 |  |
$544.2 Million 7.75% 2020 Second Lien Notes |  | 15.55% |  | 544.2 |  |  | (9.5 | ) |  | (131.5 | ) |  | 403.2 |  |
$550 Million ABL Facility: |  |  |  |  |  |  |  |  |  |  |
ABL Facility |  | N/A |  | 550.0 |  |  | N/A |  |  | N/A |  |  | — |  | (9)
Fair Value Adjustment to Interest Rate Hedge |  |  |  |  |  |  |  |  |  | 2.3 |  |
Total debt |  |  |  | $ | 3,448.2 |  |  |  |  |  |  | $ | 2,699.4 |  |
(1) | On March 2, 2016, we exchanged as part of an exchange offer $76.3 million of the 4.875 percent senior notes for $30.5 million of the 8.00 percent 1.5 lien notes that were recorded at a carrying value of $41.5 million, including undiscounted interest payments as of the transaction date. Additionally, during the third quarter of 2016 we entered into a debt for equity exchange; see NOTE 15 - CAPITAL STOCK for further discussion of this transaction.
(2) | On March 2, 2016, we exchanged as part of an exchange offer $44.7 million of the 4.80 percent senior notes for $17.9 million of the 8.00 percent 1.5 lien notes that were recorded at a carrying value of $24.4 million, including undiscounted interest payments as of the transaction date. Additionally, during the second and third quarters of 2016 we entered into a debt for equity exchange; see NOTE 15 - CAPITAL STOCK for further discussion of this transaction.
(3) | On March 2, 2016, we exchanged as part of an exchange offer $194.4 million of the 6.25 percent senior notes for $75.8 million of the 8.00 percent 1.5 lien notes that were recorded at a carrying value of $103.0 million, including undiscounted interest payments as of the transaction date.
(4) | On March 2, 2016, we exchanged as part of an exchange offer $65.1 million of the 5.90 percent senior notes for $26.0 million of the 8.00 percent 1.5 lien notes that were recorded at a carrying value of $35.4 million, including undiscounted interest payments as of the transaction date.
(5) | See the section entitled "$500 million 3.95 percent 2018 Senior Notes - Full Redemption" below for further discussion related to this instrument. On March 2, 2016, we exchanged as part of an exchange offer $17.6 million of the 3.95 percent senior notes for $11.4 million of the 8.00 percent 1.5 lien notes that were recorded at a carrying value of $15.5 million, including undiscounted interest payments as of the transaction date. Additionally, during the first quarter of 2016, we entered into a debt for equity exchange; see NOTE 15 - CAPITAL STOCK for further discussion of this transaction.
(6) | See the section entitled "$218.5 million 8.00 percent 2020 Senior Secured 1.5 Lien Notes - 2016 Exchange Offers" below for further discussion related to this instrument. As of September 30, 2016, $17.5 million of the undiscounted interest is recorded as current and classified as Other current liabilities in the Statements of Unaudited Condensed Consolidated Financial Position.
(7) | On March 2, 2016, we exchanged as part of an exchange offer $114.1 million of the 7.75 percent senior notes for $57.0 million of the 8.00 percent 1.5 lien notes that were recorded at a carrying value of $77.5 million, including undiscounted interest payments as of the transaction date.
(8) | As of September 30, 2016, no loans were drawn under the ABL Facility and we had total availability of $355.7 million as a result of borrowing base limitations. As of September 30, 2016, the principal amount of letter of credit obligations totaled $108.8 million, thereby further reducing available borrowing capacity on our ABL Facility to $246.9 million.
(9) | As of December 31, 2015, no loans were drawn under the ABL Facility and we had total availability of $366.0 million as a result of borrowing base limitations. As of December 31, 2015, the principal amount of letter of credit obligations totaled $186.3 million and commodity hedge obligations totaled $0.5 million, thereby further reducing available borrowing capacity on our ABL Facility to $179.2 million.
$500 million 3.95 percent 2018 Senior Notes - Full Redemption On September 16, 2016, we redeemed in whole $283.6 million aggregate principal of the outstanding 3.95 percent senior notes due 2018 at a total redemption price of $301.0 million. As a result, we recorded a $19.9 million pre-tax loss on full retirement of long-term debt in the third quarter of 2016, which consisted of debt redemption premiums of $17.4 million and expenses of $2.5 million related to the write-off of unamortized debt issuance costs, unamortized bond discount and deferred losses on interest rate swaps. The loss was recorded against the Gain (Loss) on extinguishment/restructuring of debt in the Statements of Unaudited Condensed Consolidated Operations for the three and nine months ended September 30, 2016. $218.5 million 8.00 percent 2020 Senior Secured 1.5 Lien Notes - 2016 Exchange Offers On March 2, 2016, we entered into an indenture among the Company, the guarantors party thereto and U.S. Bank National Association, as trustee and notes collateral agent, relating to our issuance of $218.5 million aggregate principal amount of 8.00 percent 1.5 Lien Senior Secured Notes due 2020 (the “1.5 Lien Notes”). The 1.5 Lien Notes were issued on March 2, 2016 in exchange offers for certain of our existing senior notes. The 1.5 Lien Notes bear interest at a rate of 8.00 percent per annum. Interest on the 1.5 Lien Notes is payable semi-annually in arrears on March 31 and September 30 of each year, commencing on September 30, 2016. The 1.5 Lien Notes mature on September 30, 2020 and are secured senior obligations of the Company. The 1.5 Lien Notes are jointly and severally and fully and unconditionally guaranteed on a senior secured basis by substantially all of our material U.S. subsidiaries and are secured (subject in each case to certain exceptions and permitted liens) on (i) a junior first-priority basis by substantially all of our U.S. assets, other than the ABL collateral (the "Notes Collateral"), which secures the 8.25 percent senior first lien notes due 2020 (the "First Lien Notes") obligations on a senior first-priority basis, the 7.75 percent senior second lien notes due 2020 (the "Second Lien Notes") obligations on a second-priority basis and the ABL Facility obligations on a third-priority basis, and (ii) a junior second-priority basis by our ABL collateral, which secures our ABL obligations on a first-priority basis, the First Lien Notes obligations on a senior second-priority basis and the Second Lien Notes obligations on a third-priority basis. The terms of the 1.5 Lien Notes are governed by the 1.5 Lien Notes indenture. The 1.5 Lien Notes indenture contains customary covenants that, among other things, limit our ability to incur certain secured indebtedness, create liens on principal property and the capital stock or debt of a subsidiary that owns a principal property, use proceeds of dispositions of collateral, enter into certain sale and leaseback transactions, merge or consolidate with another company and transfer or sell all or substantially all of our assets. Upon the occurrence of a “change of control triggering event,” as defined in the 1.5 Lien Notes indenture, we are required to offer to repurchase the 1.5 Lien Notes at 101 percent of the aggregate principal amount thereof, plus any accrued and unpaid interest, if any, to, but excluding, the repurchase date. We may redeem any of the 1.5 Lien Notes beginning on September 30, 2017. The initial redemption price is 104 percent of their principal amount, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. The redemption price will decline after September 30, 2017 and will be 100 percent of its principal amount, plus accrued interest, beginning on September 30, 2019. We may also redeem some or all of the 1.5 Lien Notes at any time and from time to time prior to September 30, 2017 at a price equal to 100 percent of the principal amount thereof plus a “make-whole” premium, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. In addition, at any time and from time to time on or prior to September 30, 2017, we may redeem in the aggregate up to 35 percent of the original aggregate principal amount of the 1.5 Lien Notes (calculated after giving effect to any issuance of additional 1.5 Lien Notes) with the net cash proceeds from certain equity offerings, at a redemption price of 108 percent, plus accrued and unpaid interest, if any, to, but excluding, the redemption date, so long as at least 65 percent of the original aggregate principal amount of the 1.5 Lien Notes (calculated after giving effect to any issuance of additional 1.5 Lien Notes) issued under the 1.5 Lien Notes indenture remain outstanding after each such redemption. The 1.5 Lien Notes indenture contains customary events of default, including failure to make required payments, failure to comply with certain agreements or covenants, failure to pay or acceleration of certain other indebtedness, certain events of bankruptcy and insolvency and failure to pay certain judgments. An event of default under the 1.5 Lien Notes indenture will allow either the trustee or the holders of at least 25 percent in aggregate principal amount of the then-outstanding 1.5 Lien Notes issued under the 1.5 Lien Notes indenture to accelerate, or in certain cases, will automatically cause the acceleration of, the amounts due under the 1.5 Lien Notes. We accounted for the 1.5 Lien Notes exchange as a TDR. For an exchange classified as TDR, if the future undiscounted cash flows of the newly issued debt are less than the net carrying value of the original debt, the carrying value of the newly issued debt is adjusted to the future undiscounted cash flow amount, a gain is recorded for the difference and no future interest expense is recorded. All future interest payments on the newly issued debt reduce the carrying value. Accordingly, we recognized a gain of $174.3 million in the Gain (loss) on extinguishment/restructuring of debt in the Statements of Unaudited Condensed Consolidated Operations for the nine months ended September 30, 2016. As a result, our reported interest expense will be less than the contractual interest payments throughout the term of the 1.5 Lien Notes. Debt issuance costs incurred of $5.2 million related to the notes exchange were expensed and were included in the Gain (loss) on extinguishment/restructuring of debt in the Statements of Unaudited Condensed Consolidated Operations for the nine months ended September 30, 2016. Letters of Credit We issued standby letters of credit with certain financial institutions in order to support business obligations including, but not limited to, workers compensation and environmental obligations. As of September 30, 2016 and December 31, 2015, these letter of credit obligations totaled $108.8 million and $186.3 million, respectively. Debt Maturities The following represents a summary of our maturities of debt instruments, excluding borrowings on the ABL Facility, based on the principal amounts outstanding at September 30, 2016:
| (In Millions)
| Maturities of Debt
2016 (October 1 - December 31) | $ | — |
2017 | — |
2018 | — |
2019 | — |
2020 | 1,659.0 |
2021 | 325.7 |
2022 and thereafter | 298.4 |
Total maturities of debt | $ | 2,283.1 |

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- Definition The entire disclosure for 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. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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