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Long-Term Debt | 6 Months Ended
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Jun. 30, 2012
Debt Disclosure [Abstract] |
Long-Term Debt | 4. LONG-TERM DEBT Long-term debt at June 30, 2012 and December 31, 2011 consisted of the following:
| June 30, | December 31,
Amounts in thousands | 2012 | 2011
Credit Agreement - Bank of Montreal | $3,631 | $0
Mortgage - Edmonton | 0 | 9,100
Total long-term debt | $3,631 | $9,100
Less current portion | (333) | (9,100)
Long-term portion | $3,298 | $0
Credit Agreement- Bank of Montreal On May 23, 2012, the Company, through its subsidiaries Century Resorts Alberta, Inc. (“CRA”) and Century Casino Calgary Inc. (“CAL”) entered into a CAD 28.0 million ($27.5 million) credit agreement with the Bank of Montreal (the “BMO Credit Agreement”). Proceeds from the BMO Credit Agreement were used to repay the Company’s mortgage debt related to the Edmonton property (the “Edmonton Mortgage”) and will also be used to pursue the development or acquisition of new gaming opportunities and for general corporate purposes. The BMO Credit Agreement has a term of five years and is guaranteed by the Company. The BMO Credit Agreement consists of three credit facilities to be utilized as follows: 1. Credit Facility A is a CAD 1.0 million ($1.0 million) revolving credit facility to be used for the costs of the financing, ongoing working capital requirements and operating regulatory requirements. 2. Credit Facility B is a CAD 25.0 million ($24.5 million) committed, non-revolving, reducing standby facility. Up to CAD 11 million ($10.8 million) of the Credit Facility B may be used to repay all or part of the Edmonton Mortgage with the remainder available for working capital requirements and general corporate purposes. As described below, CAD 3.7 million ($3.6 million) was drawn down under Credit Facility B and was used, with cash on hand, to repay in full the Edmonton Mortgage. Once the principal balance of the advance under Credit Facility B has been repaid, it cannot be re-borrowed. 3. Credit Facility C is a CAD 2.0 million ($2.0 million) treasury management risk facility as defined by the BMO Credit Agreement. As of June 30, 2012, the Company had approximately CAD 24.3 million ($23.8 million) available for borrowing under the BMO Credit Agreement. The BMO Credit Agreement bears interest based on credit facilities as follows: 1. Advances under Credit Facility A may be in the form of : i. Advances denominated in CAD and bearing interest at the lender’s floating rate for loans made in CAD plus a margin as defined by the BMO Credit Agreement, and/or ii. Advances denominated in USD and bearing interest at the lender’s floating rate for loan made in USD plus a margin as defined by the BMO Credit Agreement, and/or iii. Issuances of a CAD Letter of Credit (maximum face value CAD 100,000), bearing interest at a floating margin rate as defined by the BMO Credit Agreement. 2. Advances under Credit Facility B may be in the form of: i. Advances denominated in CAD and bearing interest at the lender’s floating rate for loans made in CAD plus a margin as defined by the BMO Credit Agreement (CAD 500,000 minimum and CAD 100,000 increments thereafter); ii. Advances denominated in USD and bearing interest at the lender’s floating rate for loans made in USD plus a margin as defined by the BMO Credit Agreement ($500,000 minimum and $100,000 increments thereafter); iii. Advances denominated in USD and bearing interest at the LIBOR rate fixed for 1-6 months ($1 million minimum and $500,000 increments thereafter); and/or iv. A Bankers Acceptance denominated in CAD and bearing interest at a fixed rate as defined by the BMO Credit Agreement for 1-6 months (CAD 1 million minimum and CAD 500,000 increments thereafter). 3. Longer term fixed rates of interest, up to and including the full five year term of the BMO Credit Agreement, can be achieved through the use of interest rate swaps with a deemed risk up to the maximum amount of Credit Facility C. As of June 30, 2012, no interest rate swaps were in use by the Company. 4. Any funds that are not drawn down under either Credit Facility A or B are classified as a CAD Standby Facility. Mortgage - Edmonton On May 23, 2012, the Company repaid the outstanding balance of approximately $6.3 million on the Edmonton Mortgage. The repayment consisted of $6.1 million in principal and interest due on the Edmonton Mortgage and $0.2 million in prepayment penalties and unamortized deferred financing charges. This loan payoff was funded with a $3.6 million borrowing under the BMO Credit Agreement and $2.7 million of cash on hand. The repayment by the Company terminated the Edmonton Mortgage. Deferred financing charges, which are reported as a component of other assets, are summarized as follows:
Credit Agreement - Bank of Montreal | June 30, | December 31,
Amounts in thousands | 2012 | 2011
Deferred financing charges - current | $79 | $0
Deferred financing charges - long-term | $308 | $0
Total | $387 | $0
Mortgage - Edmonton | June 30, | December 31,
Amounts in thousands | 2012 | 2011
Deferred financing charges - current | $0 | $101
Deferred financing charges - long-term | $0 | $0
Total | $0 | $101
Amortization expense relating to deferred financing charges was $0.1 million for both the six months ended June 30, 2012 and June 30, 2011, and is included in interest expense in the accompanying condensed consolidated statement of earnings. As of June 30, 2012, the Company was in compliance with all covenants related to its borrowings. Covenants of the BMO Credit Agreement include the following: a) Senior Funded Debt to EBITDA Ratio as defined by the BMO Credit Agreement may not be greater than 3.00:1.00; b) Fixed Charge Coverage Ratio as defined by the BMO Credit Agreement may not be less than 1.20:1.00; c) CRA and CAL combined shareholder’s equity may not be less than CAD 20 million; and d) Capital expenditures in any fiscal year may not exceed CAD 4.0 million in aggregate, without the lender’s consent. The consolidated weighted average interest rate on all borrowings for the Company was 17.2% for the six months ended June 30, 2012. The Company currently pays a floating interest rate on its borrowings under the BMO Credit Agreement. The current interest rate is approximately 4.0%. The weighted average interest rate is higher than the 7.0% interest rate of the Edmonton Mortgage and the 4.0% interest rate under on the BMO Credit Agreement because the Company wrote off a total of $0.1 million in deferred financing costs and paid $0.2 million in prepayment penalties in May 2012 in connection with the repayment of the Edmonton Mortgage. As of June 30, 2012, scheduled maturities of the long-term debt is as follows:
Amounts in thousands | CAD | USD
2012 | $154 | $151
2013 | 370 | 363
2014 | 370 | 363
2015 | 370 | 363
2016 | 370 | 363
Thereafter | 2,066 | 2,028
Total | $3,700 | $3,631

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- 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 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 22 -Article 5 + Details
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