Debt and obligations under capital lease

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

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



	2018	2017
December 31,	$’000	$’000

Loans from banks and other parties collateralized by tangible and intangible personal property and real estate with a maturity of two to six years (2017 - 20 months to seven years), with a weighted average interest rate of 4.41% (2017 - 4.11%)	773,548	724,208
Obligations under capital lease	68	22

Total long-term debt and obligations under capital leases	773,616	724,230

Less: Current portion	6,332	6,407
Less: Discount on secured term loan	2,642	3,092
Less: Debt issuance costs	10,996	13,979

Non-current portion of long-term debt and obligations under capital lease	753,646	700,752

On July 3, 2017, Belmond entered into an amended and restated credit agreement (the "Amended and Restated Credit Agreement"), which had previously consisted of (a) a seven-year $551,955,000 term loan facility consisting of a $345,000,000 U.S. dollar tranche and a €150,000,000 euro-denominated tranche (equivalent to $206,955,000 at drawdown), scheduled to mature on March 21, 2021; and (b) a $105,000,000 revolving credit facility scheduled to mature on March 21, 2019.

The Amended and Restated Credit Agreement provides the Company with (i) a seven-year $603,434,000 secured term loan (the "Term Loan Facility") that matures on July 3, 2024 and (ii) a $100,000,000 revolving credit facility (the "Revolving Credit Facility") that matures on July 3, 2022 (together the "Secured Credit Facilities").

The Term Loan Facility has two tranches, a U.S. dollar tranche ($394,000,000 currently outstanding) and a euro-denominated tranche (€176,315,000 currently outstanding, equivalent to $201,780,000 as at December 31, 2018). The dollar tranche bears interest at a rate of LIBOR plus 2.75% per annum, and the euro tranche bears interest at a rate of EURIBOR plus 3.00% per annum. Both tranches are subject to a 0% interest rate floor. The annual mandatory amortization is 1% of the principal amount.

The Revolving Credit Facility has a maturity of five years and bears interest at a rate of LIBOR plus 2.50% per annum, with a commitment fee of 0.4% paid on the undrawn amount.

The Secured Credit Facilities 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.

As at December 31, 2018, Belmond was financed with a $595,780,000 Term Loan Facility and a $100,000,000 Revolving Credit Facility. In March 2018, Belmond made drawdowns totaling $38,862,000 on its Revolving Credit Facility which it repaid in full in July 2018. In December 2018, Belmond made drawdowns of €15,000,000 (equivalent to $17,168,000 as at December 31, 2018) on its Revolving Credit Facility leaving an undrawn balance of $82,832,000.

In April 2017, Belmond made a drawdown of $45,000,000 on its prior Revolving Credit Facility in connection with the acquisition of Cap Juluca, which was repaid following the Amended and Restated Credit Agreement on July 3, 2017. See Note 5.

On June 22, 2018, Charleston Center LLC amended its secured loan of $112,000,000 increasing the amount of the loan to $160,000,000 and extending its maturity from August 27, 2019 to June 22, 2021. Proceeds from the additional borrowing were used to repay the outstanding balance on the Revolving Credit Facility in July 2018. The amended loan continues to bear interest at a rate of LIBOR plus 2.35% per annum. The loan has no amortization and is non-recourse to Belmond.

The following is a summary of the aggregate maturities of long-term debt, including obligations under capital lease, at December 31, 2018:



Year ended December 31,		$’000

2019		6,332
2020		6,386
2021		166,097
2022		23,215
2023		6,049
2024 and thereafter		565,537

Total long-term debt and obligations under capital lease		773,616

The Company has guaranteed $612,946,000 of the long-term debt of its subsidiary companies as at December 31, 2018 (2017 -$611,351,000).

The tables above include the debt of Charleston Center LLC of $160,602,000 at December 31, 2018 (2017 - $112,857,000). The debt is non-recourse to Belmond and includes $160,000,000 which was refinanced in June 2018.

Debt issuance costs related to the above outstanding long-term debt were $10,996,000 at December 31, 2018 (December 31, 2017 - $13,979,000), including $979,000 at December 31, 2018 (December 31, 2017 - $533,000) 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 $100,571,000 of revolving credit and working capital facilities at December 31, 2018 (2017 - $100,598,000) of which $83,404,000 was available (2017 - $100,598,000).