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Long-term Debt | 12 Months Ended
--- | ---
Dec. 31, 2015
Debt Disclosure [Abstract] |
Long-term Debt | LONG-TERM DEBT
|  |  | December 31,
Dollar amounts in millions | Interest Rate 2015 |  | 2015 |  | 2014
|  |  | Principal |  | Unamortized Debt Costs |  | Total |  | Principal |  | Unamortized Debt Costs |  | Total
Debentures: |  |  |  |  |  |  |  |  |  |  |  |  |
Senior unsecured notes, maturing 2020, interest rates fixed | 7.5 | % |  | $ | 350.0 |  |  | $ | (3.7 | ) |  | $ | 346.3 |  |  | $ | 350.0 |  |  | $ | (4.4 | ) |  | $ | 345.6 |
Bank credit facilities: |  |  |  |  |  |  |  |  |  |  |  |  |
Chilean term credit facility, maturing 2019, interest rates fixed | UF+3.9% |  |  | 12.8 |  |  |  |  | 12.8 |  |  | 14.4 |  |  |  |  | 14.4 |
Brazilian export financing facility, maturing 2017, interest rates fixed | 6.65 | % |  | 4.0 |  |  |  |  | 4.0 |  |  | 6.0 |  |  |  |  | 6.0 |
Limited recourse notes payable: |  |  |  |  |  |  |  |  |  |  |  |  |
Senior notes, payable 2018, interest rates fixed | 7.3 | % |  | 22.0 |  |  |  |  | 22.0 |  |  | 22.0 |  |  |  |  | 22.0 |
Other financing: |  |  |  |  |  |  |  |  |  |  |  |  |
Non-recourse notes payable 2018, interest rates variable | 0.2 | % |  | 368.7 |  |  | (0.2 | ) |  | 368.5 |  |  | 368.7 |  |  | (0.3 | ) |  | 368.4 |
Other |  |  | 0.3 |  |  |  |  | 0.3 |  |  | 0.8 |  |  |  |  | 0.8 |
Total |  |  | 757.8 |  |  | (3.9 | ) |  | 753.9 |  |  | 761.9 |  |  | (4.7 | ) |  | 757.2 |
Less: current portion |  |  | (2.1 | ) |  |  |  | (2.1 | ) |  | (2.4 | ) |  |  |  | (2.4 | )
Net long-term portion |  |  | $ | 755.7 |  |  | $ | (3.9 | ) |  | $ | 751.8 |  |  | $ | 759.5 |  |  | $ | (4.7 | ) |  | $ | 754.8 |
Deferred debt costs are amortized over the life of the related debt using a straight line basis which approximates the effective interest method. These costs are a direct deduction from the carrying amount related to the debt liability. If the debt is retired early, the related unamortized deferred financing costs are written off in the period the debt is retired to other non-operating income (expense). During 2013, $1.4 million of deferred debt costs were written off in association with the early debt extinguishment. LP amortized deferred debt costs of $1.1 million, $1.2 million and $1.4 million for the years ended December 31, 2015, 2014 and 2013. Included in these amortized amounts are deferred debt costs associated with our current line of credit, which is recorded as an "Other Asset" LP's Consolidated Balance Sheet. LP believes the carrying amounts of its variable rate long-term debt approximates fair market value. LP estimated the limited recourse notes payable to have a fair value of approximately $23.1 million and $23.2 million at December 31, 2015 and 2014. LP estimated the senior unsecured notes maturing in 2020 to have a fair value of $366.2 million at December 31, 2015 and $371.0 million at December 31, 2014 based upon market quotations. LP believes the carrying amounts of the Chilean term credit facility as well as the Brazil export facility approximates fair market value based upon current interest rates with similar remaining maturities. LP issued $348.6 million of senior notes in June 1998 in a private placement to institutional investors. The remaining $22.0 million of notes mature in 2018. The notes are secured by $22.2 million of notes receivable from Green Diamond Resource Company (Green Diamond). Pursuant to the terms of the notes payable, in the event of a default by Green Diamond, LP would be liable to pay only 10% of the indebtedness represented by the notes payable. LP issued $368.7 million of non-recourse notes in 2003 in a private placement to unrelated third parties. The notes mature in 2018. The notes are supported by a bank letter of credit. LP’s reimbursement obligations under the letter of credit are secured by $410.0 million in notes receivable from assets sales. In general, the creditors under this arrangement have no recourse to LP’s assets, other than the notes receivable. However, under certain circumstances, LP may be liable for certain liabilities (including liabilities associated with the marketing or remarketing of the notes payable and reimbursement obligations, which are fully cash collateralized, under the letter of credit supporting the notes payable) in an amount not to exceed 10% of the aggregate principle amount of the notes receivable. In December 2013, LP entered into a credit agreement with various lenders and American AgCredit, PCA, as administrative agent and CoBank, ACB, as letter of credit issuer. The credit agreement provides for a $200 million revolving credit facility, with a $60 million sublimit for letters of credit. The credit facility terminates and all loans made under the credit agreement become due in December 2018. As of December 31, 2015 and 2014, no revolving borrowings had been made or were outstanding under the credit facility. Certain of LP’s existing and future wholly owned domestic subsidiaries guaranty LP’s obligations under the credit facility. Subject to certain limited exceptions, obligations under the credit facility are secured by a lien on substantially all of the personal property of LP and its subsidiaries that are guarantors under the credit facility. Revolving borrowings under the credit agreement accrue interest, at the Company’s option, at either a “base rate” plus a margin of 0.75% to 2.50% or LIBOR plus a margin of 1.75% to 3.50%. The credit agreement also includes an unused commitment fee, due quarterly, ranging from 0.30% to 0.625%. The applicable margins and fees within these ranges are based on the Company’s ratio of consolidated EBITDA to cash interest charges. The “base rate” is the highest of (i) the Federal funds rate plus 0.5%, (b) the U.S. prime rate, and (iii) one month LIBOR plus 1.0%. The credit agreement contains various restrictive covenants and customary events of default. The credit agreement also contains financial covenants that require the Company and its consolidated subsidiaries to have, as of the end of each quarter, (i) a capitalization ratio (i.e., funded debt to total capitalization) of no more than 40% and (ii) unrestricted cash and cash equivalents of at least $200 million thereafter, in each case calculated in the manner specified in the credit agreement. As of December 31, 2015, we were in compliance with all financial covenants under the credit agreement. In December 2009, LP Chile entered into a term loan agreement with Banco de Credito e Inversiones for UF 943,543.7391 (equivalent to $39 million at the time of inception). The loan will be repaid in 16 semi-annual principal payments that began in June 2012 and end in December 2019. The loan bears interest at UF plus 3.90% per annum, and is partially secured by a first priority security interest in substantially all of the real property owned by LP Chile. The loan contains various restrictive covenants and requires the maintenance by LP Chile of a debt to equity ratio of less than or equal to 1. If LP Chile is late in making payments, it will also be required to maintain a ratio of net debt to earnings before interest, taxes, depreciation and amortization (EBITDA) of less than or equal to 2.5 and a ratio of EBITDA to financial costs of at least 3. The loan agreement also contains customary events of default, the occurrence of which could result in acceleration of LP’s obligations to repay the indebtedness outstanding. Any increases or decreases in the loan balance shown are related to the change in the underlying foreign currency exchange rates, the UF or principal payments. LP made no principal payments during 2015. The impact of foreign currency exchange rates in 2015 was $2.1 million which was offset by a UF change of $0.5 million. In August 2011, LP entered into an export financing loan agreement with a Brazilian bank. This loan is to be repaid in 10 equal semi-annual payments that began in January 2013 and end in July 2017. During 2015, LP made principal payments of $2.0 million. In May 2012, LP issued $350.0 million of 7.5% Senior Notes due 2020. On or after June 1, 2016, LP may, at its option on one or more occasions, redeem all or any portion of the Notes at specified redemption rates. Obligations under the indenture governing LP's Senior Notes due 2020 are unsecured and not presently guaranteed by any of its subsidiaries. The indenture contains customary covenants applicable to LP and its subsidiaries, other than certain unrestricted subsidiaries, including restrictions on actions and activities that are restricted under the credit facility. The indenture also contains customary events of default, the occurrence of which could result in acceleration of LP's obligations to repay the indebtedness outstanding thereunder. The weighted average interest rate for all long-term debt at December 31, 2015 and 2014 was approximately 4.0 percent for both periods. Required repayment of principal for long-term debt is as follows:
Dollar amounts in millions |
Year ended December 31, |
2016 | $ | 2.1 |
2017 | 6.4 |
2018 | 395.0 |
2019 | 4.3 |
2020 | 350.0 |
2021 and after | — |
Total | $ | 757.8 |
Cash paid during 2015, 2014 and 2013 for interest (net of capitalized interest) was $36.9 million, $30.8 million and $35.0 million.

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- Definition The entire disclosure for long-term debt. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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