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Long-Term Debt | 9 Months Ended
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Sep. 30, 2013
Long-Term Debt | Note 10 —Long-term debt:
| December 31, 2012 |  |  | September 30, 2013 |
| (In millions) |
Valhi: |  |  |  |  |  |  |
Snake River Sugar Company | $ |  | 250.0 |  |  | $ |  | 250.0 |
Contran credit facility |  | 157.6 |  |  |  | 173.5 |
Total Valhi debt |  | 407.6 |  |  |  | 423.5 |
Subsidiary debt: |  |  |  |  |  |  |
Kronos: |  |  |  |  |  |  |
Note payable to Contran |  | — |  |  |  | 175.0 |
Term loan |  | 384.5 |  |  |  | — |
Revolving European credit facility |  | 13.2 |  |  |  | — |
Revolving North American credit facility |  | — |  |  |  | 46.2 |
CompX: |  |  |  |  |  |  |
Promissory note payable to Timet Finance Management Company |  | 18.5 |  |  |  | — |
WCS: |  |  |  |  |  |  |
Financing capital lease |  | 69.9 |  |  |  | 68.9 |
6% promissory notes |  | 7.2 |  |  |  | 7.3 |
Other |  | 9.2 |  |  |  | 10.4 |
Total subsidiary debt |  | 502.5 |  |  |  | 307.8 |
Total debt |  | 910.1 |  |  |  | 731.3 |
Less current maturities |  | 29.6 |  |  |  | 29.7 |
Total long-term debt | $ |  | 880.5 |  |  | $ |  | 701.6 |
Valhi – Contran credit facility – During the first nine months of 2013, we had net borrowings of $15.9 million under our Contran credit facility. The average interest rate on the existing balance as of and for the nine months ended September 30, 2013 was 4.25%. At September 30, 2013, the equivalent of $51.5 million was available for borrowing under this facility. Kronos – Term loan – In February 2013, Kronos voluntarily prepaid an aggregate $290 million principal amount of its term loan. We recognized a non-cash pre-tax interest charge of $6.6 million in the first quarter related to this prepayment consisting of the write-off of the unamortized original issue discount costs and deferred financing costs associated with such prepayment. Funds for such prepayment were provided by $100 million of Kronos’ cash on hand as well as borrowings of $190 million under a new loan from Contran as described below. In July 2013 Kronos voluntarily prepaid the remaining $100 million principal amount outstanding under its term loan, using $50 million of its cash on hand as well as borrowings of $50 million under its North American revolving credit facility. We recognized a non-cash pre-tax interest charge of $2.3 million in the third quarter of 2013 related to this prepayment consisting of the write-off of the unamortized original issue discount costs and deferred financing costs associated with such prepayment. The average interest rate on the term loan for the year-to-date period ended July 30, 2013 (the payoff date) was 6.8% Note payable to Contran – As discussed above, in February 2013 Kronos entered into a promissory note with Contran that allows it to borrow up to $290 million. This new loan from Contran contains terms and conditions similar to the terms and conditions of the term loan, except that the loan from Contran is unsecured and contains no financial maintenance covenant. The independent members of Kronos’ board of directors approved the terms and conditions of the loan from Contran. The note requires quarterly principal payments of $5.0 million which commenced in March 2013, with any remaining outstanding principal due by June 2018. Voluntary principal prepayments are permitted at any time without penalty. The note bears interest at LIBOR (with LIBOR no less than 1%) plus 5.125%, or the base rate (as defined in the agreement) plus 4.125%. Kronos is required to use the base rate method until such time as both (1) the term loan discussed above has been fully repaid and (2) the European credit facility has been amended on terms satisfactory to Contran, at which time Kronos would have the option to use either the base rate or LIBOR rate methods. The average interest rate on these borrowings as of and for the period from issuance to September 30, 2013 was 7.375%. Revolving European credit facility – During the first nine months of 2013, Kronos borrowed €10 million ($12.8 million when borrowed) and repaid the entire outstanding balance of €20 million ($26.5 million when repaid) in August under its European credit facility. The average interest rate on these borrowings for the year-to-date period ended August 31, 2013 when paid off was 2.02%. At September 30, 2013, there were no outstanding borrowings under this facility. Our European revolving credit facility requires the maintenance of certain financial ratios. At September 30, 2013, based on the current earnings before income tax, interest, depreciation and amortization expense of the borrowers, Kronos would not have met the financial test if it had any net debt outstanding under this facility, and accordingly its effective available borrowing under this facility at September 30, 2013 is approximately $32.4 million, the aggregate amount of cash held by the borrowers, net of the borrowers’ other outstanding indebtedness. Kronos is in discussions with the lender to amend the facility to modify the covenant. However, we do not currently anticipate the need to draw on this facility for the foreseeable future. Revolving North American credit facility – During the first nine months of 2013, Kronos borrowed $90.3 million and repaid an aggregate of $44.1 million. The average interest rate on these borrowings as of and for the period from borrowing to September 30, 2013 was 2.63% and 2.46%, respectively. At September 30, 2013 approximately $56.6 million was available for borrowing under this facility. Canada – At September 30, 2013, an aggregate of Cdn. $7.5 million letters of credit were outstanding under Kronos’ Canadian subsidiary’s loan agreement with the Bank of Montreal which exists solely for the issuance of up to Cdn. $10.0 million in letters of credit. In January 2013, Kronos borrowed Cdn. $1.8 million (USD $1.8 million) under its Canadian subsidiary’s agreement with an economic development agency of the Province of Quebec, Canada which was recorded net of Cdn. $.5 million (USD $.5 million) imputed interest. CompX – In July 2013, CompX prepaid the remaining outstanding principal amount of the note, plus accrued interest, without penalty. The average interest rate on the promissory note payable for the year-to-date period ended July 18, 2013 (the pay-off date) was 1.3%. Restrictions and other – Certain of the credit facilities with unrelated, third-party lenders described above require the respective borrowers to maintain minimum levels of equity, require the maintenance of certain financial ratios, limit dividends and additional indebtedness and contain other provisions and restrictive covenants customary in lending transactions of this type. We are in compliance with all of our debt covenants at September 30, 2013.

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- Definition The entire disclosure for long-term debt. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 22 -Article 5 Reference 2: 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
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