LONG-TERM DEBT

The following table reconciles long-term debt:



($ millions)	2017	2016
Bank debt	2,179.0	1,672.1
Senior guaranteed notes ⁽¹⁾	1,932.0	2,148.6
Long-term debt	4,111.0	3,820.7
Long-term debt due within one year	63.8	90.6
Long-term debt due beyond one year	4,047.2	3,730.1

(1)

The Company entered into cross currency swaps and a foreign exchange swap concurrent with the issuance of the US dollar senior guaranteed notes to fix the US dollar amount of the notes for the purpose of principal repayment at Canadian dollar notional amounts. At December 31, 2017, the total principal due on the maturity of the senior guaranteed notes was $1.67 billion (December 31, 2016 - $1.74 billion) of which $50.3 million (December 31, 2016 - $68.9 million) was due within one year.

Bank Debt

The Company has combined credit facilities of $3.60 billion, including a $3.50 billion syndicated unsecured credit facility with fourteen banks and a $100.0 million unsecured operating credit facility with one Canadian chartered bank. The syndicated unsecured credit facility also includes an accordion feature that allows the Company to increase the facility by up to $500.0 million under certain conditions. The current maturity date of the syndicated unsecured credit facility and the unsecured operating credit facility is June 10, 2020. Both of these facilities constitute revolving credit facilities and are extendible annually.

The credit facilities bear interest at the applicable market rate plus a margin based on a sliding scale ratio of the Company's senior debt to earnings before interest, taxes, depletion, depreciation, amortization and impairment, adjusted for certain non-cash items including unrealized derivatives, unrealized foreign exchange, equity settled share-based compensation expense and accretion ("adjusted EBITDA").

The credit facilities and senior guaranteed notes have covenants which restrict the Company's ratio of senior debt to adjusted EBITDA to a maximum of 3.5:1.0, the ratio of total debt to adjusted EBITDA to a maximum of 4.0:1.0 and the ratio of senior debt to capital, adjusted for certain non-cash items as noted above, to a maximum of 0.55:1.0. The Company was in compliance with all debt covenants at December 31, 2017.

The Company had letters of credit in the amount of $7.5 million outstanding at December 31, 2017 (December 31, 2016 - $0.5 million).

The Company manages its credit facilities through a combination of bankers' acceptance loans, US dollar LIBOR loans and interest rate swaps.

Senior Guaranteed Notes

The Company has closed private offerings of senior guaranteed notes raising total gross proceeds of US$1.39 billion and Cdn$197.0 million. The notes are unsecured and rank pari passu with the Company's bank credit facilities and carry a bullet repayment on maturity. The senior guaranteed notes have financial covenants similar to those of the combined credit facilities described above. The terms, rates, amounts due on maturity and carrying amounts of the Company's outstanding senior guaranteed notes are detailed below:



Principal ($ millions)	Coupon Rate		Principal Due on Maturity ⁽¹⁾ (Cdn$ millions)	Interest Payment Dates	Maturity Date	Financial statement carrying value
Principal ($ millions)	Coupon Rate		Principal Due on Maturity ⁽¹⁾ (Cdn$ millions)	Interest Payment Dates	Maturity Date	2017	2016
US$67.5	5.48	%	—	September 24 and March 24	March 24, 2017	—	90.6
US$31.0	4.58	%	29.9	October 14 and April 14	April 14, 2018	38.8	41.6
US$20.0	2.65	%	20.4	December 12 and June 12	June 12, 2018	25.0	26.9
Cdn$7.0	4.29	%	7.0	November 22 and May 22	May 22, 2019	7.0	7.0
US$68.0	3.39	%	66.7	November 22 and May 22	May 22, 2019	85.1	91.3
US$155.0	6.03	%	158.3	September 24 and March 24	March 24, 2020	194.0	208.1
Cdn$50.0	5.53	%	50.0	October 14 and April 14	April 14, 2021	50.0	50.0
US$82.0	5.13	%	79.0	October 14 and April 14	April 14, 2021	102.7	110.1
US$52.5	3.29	%	56.3	December 20 and June 20	June 20, 2021	65.7	70.5
Cdn$25.0	4.76	%	25.0	November 22 and May 22	May 22, 2022	25.0	25.0
US$200.0	4.00	%	199.1	November 22 and May 22	May 22, 2022	250.4	268.5
Cdn$10.0	4.11	%	10.0	December 12 and June 12	June 12, 2023	10.0	10.0
US$270.0	3.78	%	274.7	December 12 and June 12	June 12, 2023	338.0	362.5
Cdn$40.0	3.85	%	40.0	December 20 and June 20	June 20, 2024	40.0	40.0
US$257.5	3.75	%	276.4	December 20 and June 20	June 20, 2024	322.4	345.7
Cdn$65.0	3.94	%	65.0	October 22 and April 22	April 22, 2025	65.0	65.0
US$230.0	4.08	%	291.1	October 22 and April 22	April 22, 2025	287.9	308.9
US$20.0	4.18	%	25.3	October 22 and April 22	April 22, 2027	25.0	26.9
Senior guaranteed notes			1,674.2			1,932.0	2,148.6
Senior guaranteed notes due within one year						63.8	90.6
Senior guaranteed notes due beyond one year						1,868.2	2,058.0

(1)

Includes underlying derivatives which manage the Company's foreign exchange exposure on its US dollar senior guaranteed notes. The Company considers this to be the economic amount due at maturity instead of the financial statement carrying amount. During the year ended December 31, 2017, $68.9 million (year ended December 31, 2016 - $50.1 million) was repaid on the maturity of senior guaranteed notes.

Concurrent with the issuance of US$1.36 billion senior guaranteed notes, the Company entered into cross currency swaps ("CCS") to manage the Company's foreign exchange risk. The CCS fix the US dollar amount of the notes for purposes of interest and principal repayments at a notional amount of $1.44 billion. Concurrent with the issuance of US$30.0 million senior guaranteed notes, the Company entered a foreign exchange swap which fixed the principal repayment at a notional amount of $32.2 million. See Note 24 - “Financial Instruments and Derivatives” for additional information.