Debt

3 Months Ended

Mar. 31, 2020



	March 31, 2020		December 31, 2019
Debt classified as current liabilities:
Hawesville Term Loan - current portion⁽¹⁾	$	20.0	$	20.0
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⁾	45.0		4.0
Debt classified as non-current liabilities:
Iceland Revolving Credit Facility ⁽⁴⁾	45.0		—
7.5% senior secured notes due June 2021, net of debt discount of $0.7 million and $0.8 million, respectively, interest payable semiannually	249.3		249.2
Hawesville Term Loan - less current portion⁽¹⁾, principal and interest payable monthly	15.0		20.0
Total	$	382.1	$	301.0

⁽¹⁾ See "Hawesville Term Loan" below. At March 31, 2020, the applicable interest rate was LIBOR of 1.68% plus margin of 5.375% and there is no interest payable outstanding. As of March 31, 2020, we have made $5.0 million of principal payments and $0.7 million of interest payments.

⁽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 March 31, 2020 was 5.63%.

⁽³⁾For borrowings that we expect to repay within a month, we generally elect to incur interest at a base rate plus applicable margin as defined within the agreement. The interest rates at March 31, 2020 was 3.5%.

⁽⁴⁾We have elected to incur interest at a base rate plus applicable margin as defined within the agreement. The interest rate at March 31, 2020 was 3.8%.

7.5% Notes due 2021

General. In June 2013, we issued $250.0 million of our 7.5% Notes due June 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 we received proceeds of $246.3 million, prior to payment of financing fees and related expenses. The 2021 Notes bear interest at a 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. The Notes are senior secured obligations of Century, ranking equally in right of payment with all existing and future senior indebtedness of Century, but effectively senior to unsecured debt to the extent of the value of the collateral. The maturity date for the payment of principal is June 2021.

Fair Value. Fair value for our 2021 Notes, based on the latest trading data available, was $228.5 million and $244.2 million, as of March 31, 2020 and December 31, 2019, 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 Ltd. pursuant to which the Company borrowed $40.0 million. Borrowings under the Hawesville Term Loan were 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, at a floating rate equal to LIBOR plus 5.375% per annum. The Hawesville Term Loan is not secured by any collateral.

U.S. Revolving Credit Facility

We and certain of our direct and indirect domestic subsidiaries ("the Borrowers") 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. Based on the current maturity date for our outstanding secured notes of June 1, 2021, the maturity date for the U.S. revolving credit facility would be December 1, 2020. Upon a refinancing of our secured notes, the maturity date of our U.S. revolving credit facility will extend to May 2023. 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 March 31, 2020, there were $45.0 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 and may be prepaid without penalty. The U.S revolving credit facility contains a springing financial covenant that requires us to maintain a fixed charge coverage ratio of at least 1.0 to 1.0 any time availability under the U.S revolving credit facility is less than or equal to the lower of $17.5 million or 10% of the borrowing base but not less than $12.5 million.



Status of our U.S. revolving credit facility:	March 31, 2020
Credit facility maximum amount	$	175.0
Borrowing availability	133.8
Outstanding letters of credit issued	38.3
Outstanding borrowings	45.0
Borrowing availability, net of outstanding letters of credit and borrowings	50.5

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 (the "Iceland revolving credit facility"). 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. At March 31, 2020, there were $45.0 million in outstanding borrowings under our Iceland revolving credit facility. The Iceland revolving credit facility has a term through November 2022. Principal payments, if any, are due upon maturity of the Iceland revolving credit facility and may be prepaid without penalty.



Status of our Iceland revolving credit facility:	March 31, 2020
Credit facility maximum amount	$	50.0
Borrowing availability	50.0
Outstanding letters of credit issued	—
Outstanding borrowings	45.0
Borrowing availability, net of borrowings	5.0