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Long-term Debt | 12 Months Ended
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Dec. 31, 2018
Debt Disclosure [Abstract] |
Long-term Debt | LONG-TERM DEBT
| December 31,
Dollar amounts in millions | 2018 |  | 2017
| Interest Rate |  | Principal |  | Unamortized Debt Costs |  | Total |  | Principal |  | Unamortized Debt Costs |  | Total
Debentures: |  |  |  |  |  |  |  |  |  |  |  |  |
Senior unsecured notes, maturing 2024, interest rates fixed | 4.875 | % |  | $ | 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% |  |  | 4.7 |  |  | (0.1 | ) |  | 4.6 |  |  | 7.7 |  |  | (0.1 | ) |  | 7.6 |
Limited recourse notes payable: |  |  |  |  |  |  |  |  |  |  |  |  |
Senior notes, payable matured 2018, interest rates fixed | 7.3 | % |  | — |  |  | — |  |  | — |  |  | 22.0 |  |  | — |  |  | 22.0 |
Other financing: |  |  |  |  |  |  |  |  |  |  |  |  |
Capital leases |  |  | 1.0 |  |  | — |  |  | 1.0 |  |  | 0.7 |  |  | — |  |  | 0.7 |
Total |  |  | 355.7 |  |  | (3.8 | ) |  | 351.9 |  |  | 380.4 |  |  | (4.5 | ) |  | 375.9 |
Less: current portion |  |  | (5.0 | ) |  | — |  |  | (5.0 | ) |  | (25.1 | ) |  | — |  |  | (25.1 | )
Net long-term portion |  |  | $ | 350.7 |  |  | $ | (3.8 | ) |  | $ | 346.9 |  |  | $ | 355.3 |  |  | $ | (4.5 | ) |  | $ | 350.8 |
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). We amortized deferred debt costs of $0.8 million, $0.9 million and $1.1 million for the years ended December 31, 2018, 2017 and 2016. Included in these amortized amounts are deferred debt costs associated with our current line of credit, which is recorded within "Other Assets" on LP's Consolidated Balance Sheet. We estimated our limited recourse notes payable to have a fair value of approximately $22.4 million at December 31, 2017. We estimated the Senior Notes due 2024 to have a fair value of $337.9 million and $363.9 million at December 31, 2018 and 2017 based upon market quotations. We believe the carrying amounts of the Chilean term credit facility approximates fair market value based upon current interest rates with similar remaining maturities. We issued $348.6 million of senior notes in June 1998 in a private placement to institutional investors. The remaining notes payable of $22.0 million were repaid in 2018. These notes were secured by $22.2 million of notes receivable from Green Diamond Resource Company (Green Diamond), which were received in 2018. In December 2013, we 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 2022. As of December 31, 2018 and 2017, no revolving borrowings were outstanding under the credit facility. Certain of LP’s existing and future wholly owned domestic subsidiaries may guaranty our obligations under the credit facility and, subject to certain limited exceptions, provide security through a lien on substantially all of the personal property of these subsidiaries. Revolving borrowings under the credit agreement accrue interest, at our option, at either a “base rate” plus a margin of 0.63% to 1.75% or LIBOR plus a margin of 1.63% to 2.75%. The credit agreement also includes an unused commitment fee, due quarterly, ranging from 0.20% to 0.500%. The applicable margins and fees within these ranges are based on our ratio of consolidated EBITDA to cash interest charges. The “base rate” is the highest of (i) the Federal funds rate plus 0.5%, (ii) 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) current ratio (i.e., current assets to current liabilities) of at least 2 to 1, in each case calculated in the manner specified in the credit agreement. As of December 31, 2018, we were in compliance with all financial covenants under the credit agreement. In December 2009, we 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 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 our 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. W made principal payments of $2.3 million during 2018. The impact of foreign currency exchange rates in 2018 was $0.9 million which was offset by a UF change of $0.2 million. In September 2016, we issued $350.0 million aggregate principal of 4.875% Senior Notes due in 2024. On or after September 15, 2019, we may, at our option on one or more occasions, redeem all or any portion of these notes at specified redemption rates. Obligations under the indenture governing our notes are unsecured and not presently guaranteed by any of our subsidiaries. The indenture contains customary covenants applicable to us and our 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 our obligations to repay the indebtedness outstanding thereunder. The weighted average interest rate for all long-term debt at December 31, 2018 and 2017 was approximately 4.9% and 5.1% . Required repayment of principal for long-term debt is as follows:
Dollar amounts in millions |
Years ending December 31, |
2019 | $ | 5.2 |
2020 | 0.2 |
2021 | 0.2 |
2022 | 0.1 |
2023 | — |
2024 and after | 350.0 |
Total | $ | 355.7 |
Cash paid during 2018, 2017 and 2016 for interest (net of capitalized interest) was $19.8 million, $17.5 million and $27.2 million.

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