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Long-Term Debt | 12 Months Ended
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Dec. 31, 2018
Long-Term Debt [Abstract] |
Long-Term Debt | ﻿ 7. LONG-TERM DEBT ﻿ Long-term debt and the weighted average interest rates at December 31, 2018 and 2017 consisted of the following: ﻿ ﻿
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﻿Amounts in thousands |  | December 31, 2018 |  | December 31, 2017
﻿Credit agreement - Bank of Montreal |  | $ | 40,515 |  |  | 4.43% |  | $ | 38,203 |  |  | 4.19%
﻿Credit agreements - CPL |  |  | 1,949 |  |  | 1.77% |  |  | — |  |  | —
﻿Credit facilities - CPL |  |  | 647 |  |  | 3.57% |  |  | — |  |  | —
﻿Credit agreement - CCB |  |  | 2,429 |  |  | 2.34% |  |  | 2,704 |  |  | 4.94%
﻿Financing obligation - CDR land lease |  |  | 14,291 |  |  | 13.79% |  |  | 15,541 |  |  | 13.44%
﻿Capital leases |  |  | 188 |  |  | 7.06% |  |  | 523 |  |  | 6.89%
﻿Total principal |  | $ | 60,019 |  |  | 6.74% |  | $ | 56,971 |  |  | 6.67%
﻿Deferred financing costs |  |  | (496) |  |  |  |  |  | (258) |  |  |
﻿Total long-term debt |  | $ | 59,523 |  |  |  |  | $ | 56,713 |  |  |
﻿Less current portion |  |  | (17,482) |  |  |  |  |  | (5,697) |  |  |
﻿Long-term portion |  | $ | 42,041 |  |  |  |  | $ | 51,016 |  |  |
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﻿ Credit Agreement – Bank of Montreal In May 2012, the Company, through its Canadian subsidiaries, entered into the CAD 28.0 million credit agreement with the Bank of Montreal (“BMO”). On August 15, 2014, the Company, through its Canadian subsidiaries, entered into an amended and restated credit agreement with BMO that increased the Company’s borrowing capacity to CAD 39.1 million. In September 2016, the Company, through its Canadian subsidiaries, entered into a second amended and restated credit agreement that increased the Company’s borrowing capacity to CAD 69.2 million. In August 2018, the Company, through its Canadian subsidiaries, entered into a third amended and restated credit agreement (the “BMO Credit Agreement”), to provide additional financing for the construction and development of the CMR project, which increased the Company’s borrowing capacity to CAD 102.2 million. The interest rate under the BMO Credit Agreement is BMO’s floating rate plus a margin, except for the rates for Credit Facility H, which will be determined upon execution of a lease agreement. As discussed further below, the Company has entered into interest rate swap agreements to fix the interest rate paid related to a portion of the outstanding balance on the BMO Credit Agreement. As of December 31, 2018, the Company had borrowed CAD 77.8 million, of which the outstanding balance was CAD 55.3 million ($40.5 million based on the exchange rate in effect on December 31, 2018) and the Company had approximately CAD 26.1 million ($19.1 million based on the exchange rate in effect on December 31, 2018) available under the BMO Credit Agreement. In addition, the Company is using CAD 3.0 million ($2.2 million based on the exchange rate in effect on December 31, 2018) from Credit Facility E for the interest rate swap agreements discussed below. ﻿ The BMO Credit Agreement consists of the following credit facilities: ﻿
| 1. |  | Credit Facility A is a CAD 1.1 million revolving credit facility with a term of five years that expires in August 2019. Credit Facility A may be used for general corporate purposes, including for the payment of costs related to the BMO Credit Agreement, ongoing working capital requirements and operating regulatory requirements. As of December 31, 2018, the Company had CAD 1.1 million ($0.8 million based on the exchange rate in effect on December 31, 2018) available for borrowing under Credit Facility A.
﻿
| 2. |  | Credit Facility B is an approximately CAD 24.1 million committed, non-revolving, reducing standby facility with a term of five years that expires in August 2019. The Company used borrowings under Credit Facility B primarily to repay the Company’s mortgage loan related to CRA, pay for the additional 33.3% investment in CPL, pay for development costs related to CDR and for working capital and general corporate purposes. Once the principal amount of an advance has been repaid, it cannot be re-borrowed. As of December 31, 2018, the Company had no additional available borrowings under Credit Facility B.
﻿
| 3. |  | Credit Facility C is a CAD 11.0 million revolving credit facility with a term of five years that expires in August 2019. Credit Facility C may be used as additional financing for the development of CDR. The Company may re-borrow the principal amount within the limits described in the BMO Credit Agreement. As of December 31, 2018, the Company had CAD 5.9 million ($4.3 million based on the exchange rate in effect on December 31, 2018) available for borrowing under Credit Facility C.
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| 4. |  | Credit Facility D is a CAD 30.0 million committed, reducing term credit facility with a term of five years that expires in September 2021. The Company used borrowings under Credit Facility D to pay for the Apex Acquisition. Once the principal amount of an advance has been repaid, it cannot be re-borrowed. As of December 31, 2018, the Company had no additional available borrowings under Credit Facility D.
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| 5. |  | Credit Facility E is a CAD 3.0 million treasury risk management facility. The Company may use this facility to hedge interest rate risk or currency exchange rate risk. Credit Facility E has a term of five years that expires in August 2019. The Company is currently utilizing Credit Facility E to hedge interest rate risk as discussed below.
﻿
| 6. |  | Credit Facility F is a CAD 33.0 million demand, non-revolving, construction credit facility for use for the construction and development of the CMR project. Advances for funding the CMR project can be borrowed through the BMO Credit Agreement until the earliest of (i) the date on which demand for payment is made by BMO; (ii) August 24, 2019; (iii) the Project Construction Completion Date, as defined in the BMO Credit Agreement; or (iv) the occurrence of event of default, as defined in the BMO Credit Agreement (each, a “Facility Termination Date”). On the Facility Termination Date, the principal balance will be converted to Credit Facility G. Once funds are advanced from Credit Facility F, they cannot be re-borrowed. As of December 31, 2018, the Company had CAD 19.1 million ($14.0 million based on the exchange rate in effect on December 31, 2018) available for borrowing under Credit Facility F.
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| 7. |  | Credit Facility G is a committed, non-revolving, term credit facility that the Company will utilize at the maturity of Credit Facility F. Credit Facility G has a term of five years from the date of conversion of Credit Facility F. The Company cannot re-borrow funds that have been repaid under Credit Facility G.
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| 8. |  | Credit Facility H is a CAD 2.0 million equipment leasing credit facility for use for the Century Mile project pursuant to the Interim Funding Agreement and Master Lease Agreement described in the BMO Credit Agreement. The Company may re-borrow the principal amount within the limits described in the BMO Credit Agreement pursuant to the Interim Funding Agreement and Master Lease Agreement. Maturity dates will be set once the facility is utilized. As of December 31, 2018, the Company had CAD 2.0 million ($1.5 million based on the exchange rate in effect on December 31, 2018) available for borrowing under Credit Facility H.
﻿ Any funds not drawn down under the BMO Credit Agreement are subject to standby fees ranging from 0.50% to 0.75% payable quarterly in arrears. Standby fees of CAD 0.1 million ($0.1 million based on the exchange rate in effect on December 31, 2018) were recorded as interest expense in the consolidated statement of earnings for the year ended December 31, 2018. The shares of the Company’s subsidiaries that own CRA, CAL, CSA and CMR and the Company’s 75% interest in CDR are pledged as collateral for the BMO Credit Agreement. The BMO Credit Agreement contains a number of financial covenants applicable to the Canadian subsidiaries, including restricting their incurrence of additional debt, a debt to EBITDA ratio less than 4:1, a fixed charge coverage ratio greater than 1:1, maintenance of a CAD 50.0 million equity balance and a capital expenditure limit of CAD 4.0 million for 2018, CAD 5.5 million for 2019 and CAD 2.5 million per year thereafter. The Company was in compliance with all financial covenants of the BMO Credit Agreement as of December 31, 2018. ﻿ The Company has entered into interest rate swap agreements to partially hedge the risk of future increases in the variable rate debt under the BMO Credit Agreement. The interest rate swap agreements are not designated as hedges for accounting purposes. As a result, changes in fair value of the interest rate swaps are recognized in interest expense on the Company’s consolidated statements of earnings. The interest rate is calculated as the fixed rate plus an applicable margin. As of December 31, 2018, the Company had the following interest rate swap agreements set at a Canadian Dollar Offered Rate (“CDOR”): ﻿
| · |  | Notional amount of CAD 6.5 million ($4.8 million based on the exchange rate in effect on December 31, 2018) with a rate of 3.89% expiring in August 2019.
| · |  | Notional amount of CAD 6.5 million ($4.8 million based on the exchange rate in effect on December 31, 2018) with a rate of 3.92% expiring in August 2019.
| · |  | Notional amount of CAD 11.6 million ($8.5 million based on the exchange rate in effect on December 31, 2018) with a rate of 4.08% expiring in December 2021.
﻿ Deferred financing costs consist of the Company’s costs related to the financing of the BMO Credit Agreement. The Company recognized $0.4 million and $0.3 million in deferred financing costs related to the BMO Credit Agreement for the years ended December 31, 2018 and 2016, respectively. Amortization expenses relating to deferred financing charges were $0.1 million for each of the years ended December 31, 2018, 2017 and 2016. These costs are included in interest expense in the consolidated statements of earnings (loss). ﻿ Casinos Poland As of December 31, 2018, CPL had a short-term line of credit with Alior Bank (formerly BPH Bank) used to finance current operations. The line of credit bears an interest rate of one-month Warsaw Interbank Offered Rate (“WIBOR”) plus 1.85% with a borrowing capacity of PLN 13.0 million, of which PLN 2.0 million may only be used to secure bank guarantees. The credit facility terminates March 20, 2019, and CPL is seeking to extend the term of this agreement. As of December 31, 2018, the credit facility had an outstanding balance of PLN 2.4 million ($0.6 million based on the exchange rate in effect on December 31, 2018), Alior Bank had secured bank guarantees of PLN 3.1 million ($0.8 million based on the exchange rate in effect on December 31, 2018), and approximately PLN 7.5 million ($2.0 million based on the exchange rate in effect on December 31, 2018) was available for borrowing. The credit facility contains a number of financial covenants applicable to CPL, including covenants that restrict the incurrence of additional debt by CPL and require CPL to maintain certain debt to EBITDA ratios. CPL was in compliance with all financial covenants of this credit facility as of December 31, 2018. ﻿ As of December 31, 2018, CPL also had a short-term line of credit with mBank used to finance current operations that was entered into on April 9, 2018. The line of credit bears an interest rate of overnight WIBOR plus 1.40% with a borrowing capacity of PLN 5.0 million. The credit facility terminates on March 28, 2019, and CPL is seeking to extend the term of this agreement. As of December 31, 2018, there was no outstanding balance on the line of credit and approximately PLN 5.0 million ($1.3 million based on the exchange rate in effect on December 31, 2018) was available for borrowing. The credit facility contains a number of covenants applicable to CPL, including covenants that require CPL to maintain certain liquidity and liability to asset ratios. CPL was in compliance with all financial covenants of this credit facility as of December 31, 2018. ﻿ On December 12, 2018, CPL entered into three credit agreements. ﻿ The first credit agreement between CPL and mBank is a PLN 3.0 million term loan that will be used to renovate the existing casino space at the Marriott Hotel in Warsaw. The credit agreement bears an interest rate of 1-month WIBOR plus 1.70%. The credit agreement has a three-year term through November 2021. As of December 31, 2018, the credit agreement had an outstanding balance of PLN 3.0 million ($0.8 million based on the exchange rate in effect on December 31, 2018). CPL has no further borrowing availability under this credit agreement. The credit agreement is guaranteed with a promissory note and by a building owned by CPL in Warsaw, Poland. In addition, CPL is required to maintain both cash inflows of PLN 5.0 million to its account held with mBank and financial covenants, including covenants that relate to profit margins not lower than 0.1% to 1.0%, liquidity ratios no less than 0.8% to 1.3% and a debt ratio not higher than 50% to 60%. CPL was in compliance with all financial covenants of this credit agreement as of December 31, 2018. ﻿ The second credit agreement between CPL and mBank is a PLN 4.0 million term loan that will be used to renovate casino space at the Marriott Hotel in Warsaw. The credit agreement bears an interest rate of 1-month WIBOR plus 1.70%. The credit agreement has a three-year term through November 2021. As of December 31, 2018, the credit agreement had an outstanding balance of PLN 4.0 million ($1.1 million based on the exchange rate in effect on December 31, 2018). CPL has no further borrowing availability under this credit agreement. The credit agreement is guaranteed with a promissory note and by a building owned by CPL in Warsaw, Poland. In addition, CPL is required to maintain both cash inflows of PLN 1.0 million to its account held with mBank and financial covenants, including covenants that relate to profit margins not lower than 0.1% to 0.5%, liquidity ratios no less than 0.8% to 1.2% and a debt ratio not higher than 60% to 75%. CPL was in compliance with all financial covenants of this credit agreement as of December 31, 2018. ﻿ The third credit agreement between CPL and mBank is a PLN 2.5 million term loan that will be used to purchase gaming and other equipment for the Marriott Hotel in Warsaw. The credit agreement bears interest at an interest rate of 1-month WIBOR plus 1.90%. The credit agreement has a four-year term through November 2022. As of December 31, 2018, the credit agreement had an outstanding balance of PLN 0.3 million ($0.1 million based on the exchange rate in effect on December 31, 2018). CPL had PLN 2.2 million ($0.6 million based on the exchange rate in effect on December 31, 2018) available to borrow as of December 31, 2018. The credit agreement is guaranteed with a promissory note and by a building owned by CPL in Warsaw, Poland. In addition, CPL is required to maintain both cash inflows of PLN 1.0 million to its account held with mBank and financial covenants, including covenants that relate to profit margins not lower than 0.1% to 0.5%, liquidity ratios no less than 0.8% to 1.2% and a debt ratio not higher than 60% to 75%. CPL was in compliance with all financial covenants of this credit agreement as of December 31, 2018. ﻿ Under Polish gaming law, CPL is required to maintain PLN 4.8 million in the form of deposits or bank guarantees for payment of casino jackpots and gaming tax obligations. mBank issued guarantees to CPL for this purpose totaling PLN 6.0 million ($1.6 million based on the exchange rate in effect as of December 31, 2018). The additional guarantee amounts are due to the timing of releasing the guarantees after casino closures in 2018. The mBank guarantees are secured by land owned by CPL in Kolbaskowo, Poland as well as a deposit of PLN 1.7 million ($0.5 million based on the exchange rate in effect as of December 31, 2018) with mBank and terminate in May and December 2024. In addition, CPL is required to maintain deposits or provide bank guarantees for payment of additional prizes and giveaways at the casinos. The amount of these deposits varies depending on the value of the prizes. CPL maintained PLN 0.4 million ($0.1 million based on the exchange rate in effect as of December 31, 2018) in deposits for this purpose as of December 31, 2018. These deposits are included in deposits and other on the Company’s consolidated balance sheet for the year ended December 31, 2018. ﻿ Century Casinos Bath In August 2017, the Company’s subsidiary CCB entered into a GBP 2.0 million term loan with UniCredit Bank Austria AG (“UniCredit”). The loan matures in September 2023 and bears interest at the three-month pound London Interbank Offered Rate (“LIBOR”) plus 1.625%. Proceeds from the loan were used for construction and fitting out of CCB. As of December 31, 2018, the amount outstanding on the loan was GBP 1.9 million ($2.4 million based on the exchange rate in effect on December 31, 2018). CCB has no further borrowing availability under the loan agreement. The loan is guaranteed by a $0.6 million cash guarantee by CRM. This guarantee is included in deposits and other on the Company’s consolidated balance sheet as of December 31, 2018. ﻿ Century Downs Racetrack and Casino CDR’s land lease is a financing obligation to the Company. Prior to the Company’s acquisition of its ownership interest in CDR, CDR sold a portion of land on which Century Downs is located and then entered into an agreement to lease back a portion of the land sold. The Company accounts for the lease using the financing method by accounting for the land subject to lease as an asset and the lease payments as interest on the financing obligation. Under the land lease, CDR has four options to purchase the land. The first option is on July 1, 2023. Due to the nature of the CDR land lease financing obligation, there are no principal payments due until the Company exercises its option to purchase the land. Lease payments are applied to interest only, and any change in the outstanding balance of the financing obligation relates to foreign currency translation. As of December 31, 2018, the outstanding balance on the financing obligation was CAD 19.5 million ($14.3 million based on the exchange rate in effect on December 31, 2018). ﻿ Century Resorts Management On August 13, 2018, the Company’s subsidiary, CRM, entered into a loan agreement with UniCredit (the “UniCredit Agreement”) for a revolving line of credit of up to EUR 7.0 million ($8.0 million based on the exchange rate in effect on December 31, 2018) to be used for acquisitions and capital expenditures at the Company’s existing operations or new operations. The borrowings may be denominated in EUR, bearing an interest rate of EURIBOR plus a margin of 1.5%, or USD, bearing an interest rate of LIBOR plus a margin of 1.5%. The line of credit is available until terminated by either party. Funds can be borrowed with terms of 1, 3, 6, 9 or 12 months. The UniCredit Agreement is secured by a EUR 7.0 million guarantee by the Company. The UniCredit Agreement contains customary events of default, including the failure to make required payments. Upon a failure to make required payments following a grace period, amounts due under the UniCredit Agreement may be accelerated. The Company had not borrowed any funds under the UniCredit Agreement as of December 31, 2018. ﻿ Capital Lease Agreements As of December 31, 2018, the Company had the following capital leases:
| · |  | CRA had two capital lease agreements for surveillance and general equipment with an outstanding balance of less than CAD 0.1 million (less than $0.1 million based on the exchange rate in effect on December 31, 2018);
| · |  | CAL had two capital lease agreements for general equipment with an outstanding balance of less than CAD 0.1 million (less than $0.1 million based on the exchange rate in effect on December 31, 2018);
| · |  | CDR had three capital lease agreements for racing-related equipment with an outstanding balance of CAD 0.1 million ($0.1 million based on the exchange rate in effect on December 31, 2018);
| · |  | CSA had a capital lease agreement for general equipment with an outstanding balance of less than CAD 0.1 million (less than $0.1 million based on the exchange rate in effect on December 31, 2018); and
| · |  | the Century Mile project had a capital lease agreement for trailers with an outstanding balance of less than CAD 0.1 million (less than $0.1 million based on the exchange rate in effect on December 31, 2018).
﻿ As of December 31, 2018, scheduled maturities related to long-term debt were as follows: ﻿ ﻿ ﻿ ﻿
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﻿Amounts in thousands |  | Bank of Montreal |  | Casinos Poland Credit Agreements |  | Casinos Poland Credit Facilities |  | Century Casino Bath Credit Agreement |  | Century Downs Land Lease |  | Capital Leases |  | Total
﻿2019 |  | $ | 15,679 |  | $ | 522 |  | $ | 647 |  | $ | 511 |  | $ | — |  | $ | 123 |  | $ | 17,482
﻿2020 |  |  | 2,709 |  |  | 745 |  |  | — |  |  | 511 |  |  | — |  |  | 47 |  |  | 4,012
﻿2021 |  |  | 13,155 |  |  | 682 |  |  | — |  |  | 511 |  |  | — |  |  | 17 |  |  | 14,365
﻿2022 |  |  | 510 |  |  | — |  |  | — |  |  | 511 |  |  | — |  |  | 1 |  |  | 1,022
﻿2023 |  |  | 510 |  |  | — |  |  | — |  |  | 385 |  |  | — |  |  | — |  |  | 895
﻿Thereafter |  |  | 7,952 |  |  | — |  |  | — |  |  | — |  |  | 14,291 |  |  | — |  |  | 22,243
﻿Total |  | $ | 40,515 |  | $ | 1,949 |  | $ | 647 |  | $ | 2,429 |  | $ | 14,291 |  | $ | 188 |  | $ | 60,019
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There is no set repayment schedule for the CPL credit facilities. The Company classifies them as short-term debt due to the nature of the agreements. The Company estimates that Credit Facility F of the BMO Credit Agreement will be converted to Credit Facility G, a term loan, in August 2019, and the Bank of Montreal maturity schedule above is based on this assumption. The current amount borrowed, any additional borrowings or a different conversion date will change the maturity of that debt. The UniCredit Agreement is not included in the table above because no amounts were borrowed as of December 31, 2018.

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- Definition The entire disclosure for long-term debt. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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