XML 57 R13.htm IDEA: XBRL DOCUMENT
v3.3.0.814

Long-Term Debt | 9 Months Ended
--- | ---
Sep. 30, 2015
Debt Disclosure [Abstract] |
Long-Term Debt | Note 7: Long-Term Debt Our long-term debt consists of the following:
|  | September 30, 2015 |  |  | December 31, 2014 |
|  | (In Thousands) |
Working Capital Revolver Loan, with a current interest rate of 3.75% (A) |  | $ | 13,301 |  |  | $ | — |
7.75% Senior Secured Notes due 2019 (B) |  |  | 425,000 |  |  |  | 425,000 |
Secured Promissory Note due 2016, with a current interest rate of 3.33% |  |  | 17,615 |  |  |  | 22,814 |
Secured Promissory Note due 2021, with a current interest rate of 5.25% (C) |  |  | 16,189 |  |  |  | — |
Secured Promissory Note due 2022, with a current interest rate of 4.21% (D) |  |  | 15,000 |  |  |  | — |
Other, with a current weighted-average interest rate of 4.50%, most of which is secured primarily by machinery and equipment |  |  | 9,343 |  |  |  | 9,504 |
|  |  | 496,448 |  |  |  | 457,318 |
Less current portion of long-term debt |  |  | 23,849 |  |  |  | 10,680 |
Long-term debt due after one year |  | $ | 472,599 |  |  | $ | 446,638 |
(A) | In June 2015, the working capital revolver loan (as amended, the “Working Capital Revolver Loan”) was amended, by which the lender released its second-priority security interest and liens in collateral that also secures, on a first priority basis, the 7.75% Senior Secured Notes due 2019 (“Senior Secured Notes”). The amendment also amends the definition of Permitted Investments to include investments that are made:
| • |  | To the extent that the Consolidated Leverage Ratio (as defined in the amendment) does not exceed 2.5 to 1.0;
| • |  | In amounts not to exceed 50% of the cumulative consolidated net income or loss since August 7, 2013;
| • |  | To permit $35 million in joint ventures; and
| • |  | To permit $50 million in our subsidiary, Zena Energy L.L.C. (“Zena”)
The amendment also provides that we can incur additional indebtedness if the Fixed Charge Coverage Ratio (as defined in the amendment) is greater than 2.0 to 1.0. Our ability to make permitted investments or incur indebtedness is conditioned upon our not being in default and having at least 20% of the maximum revolver commitment or $20 million, whichever is greater, being available. The Working Capital Revolver Loan continues to provide (a) advances up to $100 million, which are based on specified percentages of eligible accounts receivable and inventories (b), up to $15 million of letters of credit, the outstanding amount of which reduces the availability under the Working Capital Revolver Loan, and (c) the maturity date is April 13, 2018.
(B) | The Senior Secured Notes bear interest at the rate of 7.75% per year and mature on August 1, 2019. Interest is to be paid semiannually on February 1st and August 1st. The Senior Secured Notes are general senior secured obligations of LSB. The Senior Secured Notes are jointly and severally and fully and unconditionally guaranteed by all of LSB’s current wholly-owned subsidiaries, with all of the guarantees, except one, being senior secured guarantees and one being a senior unsecured guarantee. The Senior Secured Notes rank equally in right of payment to all of LSB’s and the guarantors’ existing and future senior secured debt, including the Working Capital Revolver Loan, and are senior in right of payment to all of LSB’s and the guarantors’ future subordinated indebtedness. LSB does not have independent assets or operations.
(C) | The secured promissory note due 2021 (the “Secured Promissory Note due 2021”) is an agreement between one of our subsidiaries, El Dorado Chemical Company (“EDC”), a subsidiary within our Chemical Business, and a lender for an original principal amount of approximately $16.2 million. The Secured Promissory Note due 2021 bears interest at the rate of 5.25% per year and matures on March 26, 2021. Interest only is payable monthly for the first 12 months of the term. Principal and interest are payable monthly for the remaining term of the Secured Promissory Note due 2021. This Secured Promissory Note due 2021 is secured by a natural gas pipeline being constructed at the El Dorado Facility and is guaranteed by LSB.
(D) | On September 16, 2015, El Dorado Ammonia L.L.C. (“EDA”), a subsidiary within our Chemical Business, entered into a secured promissory note due 2022 (the “Secured Promissory Note due 2022”) for the construction financing of an ammonia storage tank and related systems with an initial funding received of $15.0 million and a maximum principal note amount of $19.8 million. The remainder of the funding under the Secured Promissory Note due 2022 is expected to be drawn upon completion of the ammonia storage tank, but in any event by May 2016 (the “Loan Conversion Date”). Up to the Loan Conversion Date, EDA will make monthly interest payments on the outstanding principal borrowed.
On the Loan Conversion Date, the outstanding principal balance will be converted to a seven year secured term loan requiring equal monthly principal and interest payments. In addition, a final balloon payment equal to the remaining outstanding principal (or 30% of the outstanding principal balance on the Loan Conversion Date) is required on the maturity date. The Secured Promissory Note due 2022 bears interest at a rate that is based on the monthly LIBOR rate plus 4.0% and matures in May 2022. The Secured Promissory Note due 2022 is secured by the ammonia tank and related systems and is guaranteed by LSB. EDA may prepay all of the principal amount of the Secured Promissory Note due 2022 from the day following the first anniversary date of the Loan Conversion Date. A prepayment premium is required from the day following the first anniversary date of the Loan Conversion Date beginning at 1.114% and ending at 0.031%, a month prior to the maturity date.

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 long-term debt. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
Name: | us-gaap_LongTermDebtTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration