Debt and obligations under capital lease

(a) Long-term debt and obligations under capital lease

Long-term debt and obligations under capital lease consist of the following:



	March 31, 2017	December 31, 2016
	$’000	$’000

Loans from banks and other parties collateralized by tangible and intangible personal property and real estate with a maturity of three to four years (2016 - two to five years), with a weighted average interest rate of 4.27% (2016 - 4.27%)	602,777	602,083
Obligations under capital lease	13	19

Total long-term debt and obligations under capital lease	602,790	602,102

Less: Current portion	5,307	5,284
Less: Discount on secured term loan	1,434	1,515
Less: Debt issuance costs	8,948	9,535

Non-current portion of long-term debt and obligations under capital lease	587,101	585,768

Belmond is financed with a $489,737,000 secured term loan and a $105,000,000 revolving credit facility.

The term loan has two tranches, a U.S. dollar tranche ($334,415,000 currently outstanding) and a euro-denominated tranche (€145,398,000 currently outstanding, equivalent to $155,322,000 as at March 31, 2017). The dollar tranche bears interest at a rate of LIBOR plus 3% per annum, and the euro tranche bears interest at a rate of EURIBOR plus 3% per annum. Both tranches are subject to a 1% interest rate floor. The term loan matures in 2021 and the annual mandatory amortization is 1% of the principal amount.

The revolving credit facility matures in March 2019 and bears interest at a rate of LIBOR plus 2.75% per annum, with a commitment fee of 0.4% paid on the undrawn amount.

The term loan and revolving credit facility are secured by pledges of shares in certain Company subsidiaries and by security interests in tangible and intangible personal property. There are no mortgages over real estate.

In August 2014, Charleston Center LLC entered into an $86,000,000 loan secured on its real and personal property. The loan had a 2019 maturity and bore interest at a rate of LIBOR plus 2.12% per annum. In June 2016, Charleston Center LLC refinanced this loan with a $112,000,000 new loan with the same 2019 maturity. The interest rate on the new loan is LIBOR plus 2.35% per annum, has no amortization and is non-recourse to Belmond. The additional proceeds were used to repay a 1984 development loan from a municipal agency in the principal amount of $10,000,000 and accrued interest of $16,819,000. In connection with the early repayment of the loan, Belmond negotiated a discount that resulted in a net gain reported in the statement of consolidated operations during the year ended December 31, 2016 of $1,200,000 upon extinguishment of debt, including the payment of a tax indemnity to our partners of $2,800,000 in respect of their income from the discount arising on the cancellation of indebtedness.

The following is a summary of the aggregate maturities of consolidated long-term debt, including obligations under capital lease, at March 31, 2017:



		$’000

Remainder of 2017		3,636
2018		5,311
2019		117,322
2020		5,337
2021		471,184
2022 and thereafter		—

Total long-term debt and obligations under capital lease		602,790

The Company has guaranteed $489,737,000 of the long-term debt of its subsidiary companies as at March 31, 2017 (December 31, 2016 - $488,985,000).

The tables above include the debt of Charleston Center LLC of $113,040,000 at March 31, 2017 (December 31, 2016 - $113,098,000). The debt is non-recourse to Belmond and includes $112,000,000 which was refinanced in June 2016.

Debt issuance costs related to the above outstanding long-term debt were $8,948,000 at March 31, 2017 (December 31, 2016 - $9,535,000), including $860,000 at March 31, 2017 (December 31, 2016 - $888,000) related to the debt of Charleston Center LLC, a consolidated VIE, and are amortized to interest expense over the term of the corresponding long-term debt.

(b) Revolving credit and working capital facilities

Belmond had approximately $105,533,000 of revolving credit and working capital facilities at March 31, 2017 (December 31, 2016 - $105,525,000) of which $105,533,000 was available (December 31, 2016 - $105,525,000).