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LONG-TERM DEBT AND INTEREST RATE SWAPS

12 Months Ended

Jan. 31, 2015

9. LONG-TERM DEBT AND INTEREST RATE SWAPS

Long-term debt consisted of notes payable secured by certain land, buildings and equipment. Interest rates ranged from 3.15% to 4.00% in fiscal years 2014 and 2013. During fiscal year 2014, the Company made principal payments of approximately $75.7 million which paid off all amounts due related to long-term debt. During fiscal year 2014, the Company also terminated One Earth’s and NuGen’s long-term debt and revolving debt agreements. The following provides information on rates segregated as fixed or variable and by term:

	January 31, 2014
		Balance
Interest Rates	Maturity	(in thousands)
3.24% - 4.00%	Variable Within five years		$	75,726
3.24% - 4.00%	Variable Within five years		$	75,726

The fair value of the Company’s long-term debt at January 31, 2014 was approximately $75.1 million. The fair value was estimated using a Level 2 discounted cash flow analysis and the Company’s estimate of market rates of interest for similar loan agreements.

One Earth entered into two forward interest rate swaps in the notional amounts of $50.0 million and $25.0 million with the First National Bank of Omaha. The swap settlements commenced as of July 31, 2009; the $50.0 million swap terminated on July 8, 2014 and the $25.0 million swap terminated on July 31, 2011. The $50.0 million swap fixed a portion of the variable interest rate of the term loan subsequent to the plant completion date at 7.9% while the $25.0 million swap fixed the rate at 5.49%. At January 31, 2014, One Earth recorded a liability of approximately $1.1 million related to the fair value of the remaining swap. The change in fair value is recorded in the Consolidated Statements of Operations.