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Long-Term debt | 12 Months Ended
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Dec. 31, 2016
Debt Disclosure [Abstract] |
Long-Term Debt | Note 8 – Long-term debt:
| December 31, |
| 2015 |  |  | 2016 |
| (In millions) |
Term loan | $ | 338.0 |  |  | $ | 335.9 |
Other |  | 3.0 |  |  |  | 3.1 |
Total debt |  | 341.0 |  |  |  | 339.0 |
Less current maturities |  | 3.8 |  |  |  | 3.6 |
Total long-term debt | $ | 337.2 |  |  | $ | 335.4 |
Term loan – In February 2014, we entered into a new $350 million term loan. The term loan was issued at 99.5% of the principal amount, or an aggregate of $348.3 million. We used $170 million of the net proceeds of the term loan to prepay the outstanding principal balance of our note payable to Contran (along with accrued and unpaid interest through the prepayment date) and such note payable was cancelled. The remaining net proceeds of the term loan were available for our general corporate purposes. The term loan, as amended in May 2015:
| • | bears interest, at our option, at LIBOR (with LIBOR no less than 1.0%) plus 3.00%, or the base rate, as defined in the agreement, plus 2.00%;
| • | requires quarterly principal repayments of $875,000 which commenced in June 2014, other mandatory principal repayments of formula-determined amounts under specified conditions with all remaining principal balance due in February 2020. Voluntary principal prepayments are permitted at any time;
| • | is collateralized by, among other things, a first priority lien on (i) 100% of the common stock of certain of our U.S. wholly-owned subsidiaries, (ii) 65% of the common stock or other ownership interest of our Canadian subsidiary (Kronos Canada, Inc.) and certain first-tier European subsidiaries (Kronos Titan GmbH and Kronos Denmark ApS) and (iii) a $395.7 million unsecured promissory note issued by our wholly-owned subsidiary, Kronos International, Inc. (KII) to us;
| • | is also collateralized by a second priority lien on all of the U.S. assets which collateralize our North American revolving facility, as discussed below;
| • | contains a number of covenants and restrictions which, among other things, restrict our ability to incur additional debt, incur liens, pay dividends or merge or consolidate with, or sell or transfer substantially all of our assets to, another entity and contains other provisions and restrictive covenants customary in lending transactions of this type (however, there are no ongoing financial maintenance covenants); and
| • | contains customary default provisions, including a default under any of our other indebtedness in excess of $50 million.
Prior to the May 2015 amendment to the term loan, the applicable margin on outstanding LIBOR-based borrowings was 3.75% and the applicable margin on outstanding base rate borrowings was 2.75%. All other terms of the term loan, including principal repayments, maturity and collateral remain unchanged. We accounted for such amendment to our term loan as a modification of the terms of the term loan. We paid a $750,000 refinancing fee in connection with this amendment, which along with the existing unamortized deferred financing costs associated with the term loan are being amortized over the remaining term of the loan. The average interest rate on the term loan borrowings was 4.0% as of and for the year ended December 31, 2016. The carrying value of the term loan at December 31, 2016 is stated net of unamortized original issue discount of $.9 million and debt issuance costs of $3.6 million (December 31, 2015 - $1.2 million and $4.7 million). See Note 18 for a discussion of the interest rate swap we entered into in the third quarter of 2015 pursuant to our interest rate risk management strategy. Revolving credit facilities Revolving North American credit facility – In June 2012, we entered into a $125 million revolving bank credit facility. As amended in January 2017, the facility matures the earlier of (i) January 30, 2022 or (ii) 90 days prior to the maturity date of our term loan (or the maturity date of any new term loan constituting a permitted refinancing of the existing term loan). Based on the February 2020 maturity date of our existing term loan, the maturity date of the North American credit facility is currently November 2019. Borrowings under the revolving credit facility are available for our general corporate purposes. Available borrowings on this facility are based on formula-determined amounts of eligible trade receivables and inventories, as defined in the agreement, of certain of our North American subsidiaries less any outstanding letters of credit up to $15 million issued under the facility (with revolving borrowings by our Canadian subsidiary limited to $25 million). Any amounts outstanding under the revolving credit facility bear interest, at our option, at LIBOR plus a margin ranging from 1.5% to 2.0% or at the applicable base rate, as defined in the agreement, plus a margin ranging from .5% to 1.0%. The credit facility is collateralized by, among other things, a first priority lien on the borrowers’ trade receivables and inventories. The facility contains a number of covenants and restrictions which, among other things, restricts the borrowers’ ability to incur additional debt, incur liens, pay dividends or merge or consolidate with, or sell or transfer all or substantially all of their assets to, another entity, contains other provisions and restrictive covenants customary in lending transactions of this type and under certain conditions requires the maintenance of a specified financial covenant (fixed charge coverage ratio, as defined) to be at least 1.1 to 1.0. We had no borrowings or repayments under this facility during 2015. During 2016, we borrowed $266.2 million and repaid $266.2 million under this facility. At December 31, 2016 we had approximately $74.8 million available for borrowing under this revolving facility. Revolving European credit facility – Our operating subsidiaries in Germany, Belgium, Norway and Denmark have a €120 million secured revolving bank credit facility that matures in September 2017. We expect to extend the maturity date of this facility on or prior to its maturity date. We may denominate borrowings in euros, Norwegian kroner or U.S. dollars. Outstanding borrowings bear interest at LIBOR plus 1.90%. The facility is collateralized by the accounts receivable and inventories of the borrowers, plus a limited pledge of all of the other assets of the Belgian borrower. The facility contains certain restrictive covenants that, among other things, restrict the ability of the borrowers to incur debt, incur liens, pay dividends or merge or consolidate with, or sell or transfer all or substantially all of the assets to, another entity, and requires the maintenance of certain financial ratios. In addition, the credit facility contains customary cross-default provisions with respect to other debt and obligations of the borrowers, KII and its other subsidiaries. We had no borrowings or repayments under this facility during 2015 and 2016 and at December 31, 2016, there were no outstanding borrowings under this facility. Our European revolving credit facility requires the maintenance of certain financial ratios, and one of such requirements is based on the ratio of net debt to last twelve months earnings before income tax, interest, depreciation and amortization expense (EBITDA) of the borrowers. Based upon the borrowers’ last twelve months EBITDA as of December 31, 2016 and the net debt to EBITDA financial test, our borrowing availability at December 31, 2016 is approximately 47% of the credit facility, or €55.8 million ($58.5 million). Aggregate maturities and other – Aggregate maturities of debt at December 31, 2016 are presented in the table below.
Year ending December 31, |  | Amount |
|  | (In millions) |
2017 |  | $ | 3.6 |
2018 |  |  | 4.1 |
2019 |  |  | 4.2 |
2020 |  |  | 330.6 |
2021 |  |  | .7 |
2022 and thereafter |  |  | .3 |
Gross maturities |  |  | 343.5 |
Less original issue discount and debt issuance costs |  |  | 4.5 |
Total |  | $ | 339.0 |
We are in compliance with all of our debt covenants at December 31, 2016.

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