XML 94 R29.htm IDEA: XBRL DOCUMENT v2.4.0.8
Long-Term Debt (Tables)
 6 Months Ended
Jun. 30, 2013
Debt Disclosure [Abstract]  
Schedule of Long-Term Debt

Our long-term debt consists of the following:

 

     June 30,
2013		      December 31,
2012		  
     (In Thousands)  

Working Capital Revolver Loan (A)

    $ —         $ —     

Secured Term Loan (B)

      66,563         68,438   

Secured Promissory Note (C)

      32,837         —     

Other, with a current weighted-average interest rate of 5.48%, most of which is secured by machinery, equipment and real estate

      8,465         4,003   
  

 

 

     

 

 

  
     107,865         72,441   

Less current portion of long-term debt

      11,718         4,798   
  

 

 

     

 

 

  

Long-term debt due after one year

    $ 96,147       $ 67,643   
  

 

 

     

 

 

  

(A) As of June 30, 2013, our wholly owned subsidiary, ThermaClime, LLC (“ThermaClime”) and its subsidiaries are parties to a $50 million revolving credit facility (the “Working Capital Revolver Loan”). See additional discussion under Note 16 – Subsequent Events.

(B) As of June 30, 2013, ThermaClime and certain of its subsidiaries are parties to a term loan agreement (the “Secured Term Loan”). The stated interest rate on the Secured Term Loan includes a variable interest rate (based on three-month LIBOR plus 300 basis points, a rate that is adjusted quarterly) and a fixed interest rate. At June 30, 2013, the weighted-average interest rate was 3.90%. The Secured Term Loan borrowers are also subject to numerous covenants under the agreement. As defined in the agreement, the Secured Term Loan borrowers are also subject to a minimum fixed charge coverage ratio of not less than 1.10 to 1 and a maximum leverage ratio of not greater than 4.50 to 1. Both of these requirements are measured quarterly on a trailing twelve-month basis. The Secured Term Loan borrowers were in compliance with these financial covenants for the twelve-month period ended June 30, 2013. A prepayment premium equal to 1.0% of the principal amount prepaid is due to the lenders should the borrowers elect to prepay on or prior to March 29, 2014; however, this premium is eliminated thereafter. See additional discussion under Note 16 – Subsequent Events.

(C) On February 1, 2013, Zena Energy LLC (“Zena”), a subsidiary within our Chemical Business, entered into a loan (the “Secured Promissory Note”) with a lender in the original principal amount of $35 million. The Secured Promissory Note follows the acquisition by Zena of working interests (“Working Interests”) in certain natural gas properties during October 2012. The proceeds of the Secured Promissory Note effectively financed $35 million of the approximately $50 million purchase price of the Working Interests previously paid out of LSB’s working capital. The proceeds of the Secured Promissory Note are being used for general working capital purposes. The Secured Promissory Note matures on February 1, 2016. Principal and interest are payable monthly based on a five-year amortization at a defined LIBOR rate plus 300 basis points (but not below 3.00% per annum) with a final balloon payment of $15.3 million. The interest rate at June 30, 2013 was 3.27%. The loan is secured by the Working Interests and related properties and proceeds.