Debt

6 Months Ended

Jun. 30, 2019



	June 30, 2019		December 31, 2018
Debt classified as current liabilities:
Term loan - current portion⁽¹⁾, interest payable monthly	$	10.0	$	—
Hancock County industrial revenue bonds ("IRBs") due April 1, 2028, interest payable quarterly (variable interest rates (not to exceed 12%)) ⁽²⁾	7.8		7.8
U.S. revolving credit facility ⁽³⁾	8.1		23.3
Debt classified as non-current liabilities:
7.5% senior secured notes due June 1, 2021, net of debt discount of $1.1 million and $1.4 million, respectively, interest payable semiannually	248.9		248.6
Term loan - less current portion⁽¹⁾, interest payable monthly	30.0		—
Total	$	304.8	$	279.7

⁽¹⁾ See "Hawesville Term Loan" paragraph below. At June 30, 2019, the applicable interest rate was LIBOR of 2.53% plus margin of 5.375%.

⁽²⁾ The IRBs are classified as current liabilities because they are remarketed weekly and could be required to be repaid upon demand if there is a failed remarketing. The IRB interest rate at June 30, 2019 was 2.09%.

⁽³⁾The U.S. revolving credit facility is classified as a current liability because we repay amounts outstanding and reborrow funds based on our working capital requirements. Borrowings bear interest at our option of either LIBOR or a base rate, plus, in each case, an applicable interest margin. At June 30, 2019, all outstanding borrowings were subject to a rate of 6.00%.

7.5% Notes due 2021

General. On June 4, 2013, we issued $250.0 million of our 7.5% Notes due June 1, 2021 (the "2021 Notes") in a private offering exempt from the registration requirements of the Securities Act of 1933, as amended. The 2021 Notes were issued at a discount and bear interest at the rate of 7.5% per annum on the principal amount, payable semi-annually in arrears in cash on June 1st and December 1st of each year.

Fair Value. Fair value for our 2021 Notes was based on the latest trading data available and was $249.0 million and $247.9 million, as of June 30, 2019 and December 31, 2018, respectively. Although we use quoted market prices for identical debt instruments, the markets on which they trade are not considered to be active and are therefore considered Level 2 fair value measurements.

Hawesville Term Loan

On April 29, 2019, we entered into a loan agreement with Glencore pursuant to which the Company borrowed $40.0 million. Borrowings under the Hawesville Term Loan are expected to be used to partially finance the second phase of the Hawesville restart project. The Hawesville Term Loan matures on December 31, 2021, and is to be repaid in twenty-four (24) equal monthly installments of principal, beginning on January 31, 2020. The Hawesville Term Loan bears interest, due monthly beginning at inception, at a floating rate equal to LIBOR plus 5.375% and is not secured by any collateral.

U.S. Revolving Credit Facility

We and certain of our direct and indirect domestic subsidiaries have a senior secured revolving credit facility with a syndicate of lenders (the "U.S. revolving credit facility"). The U.S. revolving credit facility provides for borrowings of up to $175.0 million in the aggregate, including up to $110.0 million under a letter of credit sub-facility, and also includes an uncommitted accordion feature whereby borrowers may increase the capacity of the U.S. revolving credit facility by up to $50.0 million, subject to agreement with the lenders.

The U.S. revolving credit facility matures on the earlier of May 2023 or six months before the stated maturity of our outstanding senior secured notes. Any letters of credit issued and outstanding under the U.S. revolving credit facility reduce our borrowing availability on a dollar-for-dollar basis. At June 30, 2019, there were $8.1 million in outstanding borrowings

under our U.S. revolving credit facility. Principal payments, if any, are due upon maturity of the U.S. revolving credit facility.



Status of our U.S. revolving credit facility:	June 30, 2019
Credit facility maximum amount	$	175.0
Borrowing availability	172.3
Outstanding letters of credit issued	37.6
Outstanding borrowings	8.1
Borrowing availability, net of outstanding letters of credit and borrowings	126.5

Iceland Revolving Credit Facility

Our wholly-owned subsidiary, Nordural Grundartangi ehf ("Grundartangi"), has entered into a $50.0 million revolving credit facility agreement with Landsbankinn hf., dated November 2013 as amended. Under the terms of the Iceland revolving credit facility, when Grundartangi borrows funds it will designate a repayment date, which may be any date prior to the maturity of the Iceland revolving credit facility. The Iceland revolving credit facility has a term through November 2020.



Status of our Iceland revolving credit facility:	June 30, 2019
Credit facility maximum amount	$	50.0
Borrowing availability	50.0
Outstanding letters of credit issued	—
Outstanding borrowings	—
Borrowing availability, net of borrowings	50.0