XML 27 R15.htm IDEA: XBRL DOCUMENT
v3.20.2

Debt | 6 Months Ended
--- | ---
Jun. 30, 2020
Debt Disclosure [Abstract] |
Debt | Debt
| June 30, 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 $0.5 million and $0.8 million, respectively, interest payable semiannually (5) | 249.5 |  |  | 249.2 |
Hawesville Term Loan - less current portion(1), principal and interest payable monthly | 10.0 |  |  | 20.0 |
Total | $ | 377.3 |  |  | $ | 301.0 |
(1) See "Hawesville Term Loan" below. At June 30, 2020, the applicable interest rate was LIBOR of 0.4% plus margin of 5.375% and there is no interest payable outstanding. As of June 30, 2020, we have made $10.0 million of principal payments and $1.2 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 June 30, 2020 was 0.39%. (3) We have elected to incur interest at LIBOR plus applicable margin as defined within the agreement. The interest rate at June 30, 2020 was 2.5%. (4) We have elected to incur interest at a base rate plus applicable margin as defined within the agreement. The interest rate at June 30, 2020 was 3.8%. (5) Due to the refinancing with the 2025 Notes noted below, the 2021 Notes is presented as non-current liability on the Consolidated Balance Sheets. 7.5% Notes due 2021 General. In June 2013, we issued $250.0 million of 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 accrued 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. Fair Value. Fair value for the 2021 Notes, based on the available trading data, was $250.5 million and $244.2 million, as of June 30, 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. As disclosed in N ote 15. Subsequent E vents, on July 1, 2020, we issued $250.0 million in aggregate principal amount of senior secured notes due 2025 (the "2025 Notes"). The 2025 Notes bear interest semi-annually in arrears on January 1 and July 1 of each year, beginning on January 1, 2021, at a rate of (i) 10.00% per annum in cash and (ii) 2.00% per annum in the form of additional notes or in cash, at Century's option. In connection with the offering of the 2025 Notes, we also commenced a cash tender offer to purchase at par any and all of our outstanding 2021 Notes. 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. In connection with the offering of the 2025 Notes, on June 17, 2020, we entered into Amendment No.1 to our U.S. revolving credit facility extending the maturity date of the U.S. revolving credit facility to May 16, 2023. Amendment No.1 became effective on July 1, 2020, upon the closing of the offering of the 2025 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, 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. As of June 30, 2020, we were in compliance with all such covenants or maintained availability above such covenant triggers.
Status of our U.S. revolving credit facility: | June 30, 2020
Credit facility maximum amount | $ | 175.0 |
Borrowing availability | 106.2 |
Outstanding letters of credit issued | 42.9 |
Outstanding borrowings | 45.0 |
Borrowing availability, net of outstanding letters of credit and borrowings | 18.3 |
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"). At June 30, 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: | June 30, 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 |

X
- References No definition available. + Details
Name: | us-gaap_DebtDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
Name: | us-gaap_DebtDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration