DEBT AND CAPITAL LEASE OBLIGATIONS

The current and non-current portions of long-term debt and capital lease obligations as of September 30, 2013 and December 31, 2012 are as follows (in thousands):



	September 30, 2013				December 31, 2012
	Current		Non-Current		Current		Non-Current
3.25% Convertible Senior Notes due 2028	$	—	$	5,334	$	48,081	$	—
7.875% Senior Notes due 2021	—		300,000		—		—
Capital lease obligations	3,868		1,038		7,902		3,460
	$	3,868	$	306,372	$	55,983	$	3,460

3.25% Convertible Senior Notes due 2028

Per the indenture governing the 3.25% Convertible Senior Notes due 2028 (the “Convertible Notes”), the Company announced on February 13, 2013 that it was offering to repurchase all of its outstanding 3.25% Convertible Senior Notes due 2028. As of February 12, 2013, there was $48.7 million aggregate principal amount of Convertible Notes outstanding. The Company repurchased $43.3 million in aggregate principal amount, leaving a balance of $5.3 million at September 30, 2013.

7.875% Senior Notes due 2021

On January 29, 2013, the Company completed an offering of $300 million in aggregate principal amount of 7.875% Senior Notes due 2021 (the “Notes”) in a private placement conducted pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as amended (the “Securities Act”). The Company commenced an exchange offer for the Notes on September 30, 2013 to exchange the Notes for freely transferable notes containing substantially similar terms, in accordance with the registration rights granted to the holders of the Notes when they were issued. The exchange offer was consummated on November 5, 2013. As of September 30, 2013, the outstanding balance of the Notes was $300 million.

Revolving Credit Facility

On August 1, 2012, Coeur Alaska, Inc. and Coeur Rochester, Inc. (the “Borrowers”), each a wholly-owned subsidiary of the Company, entered into a new Credit Agreement (the “Credit Agreement”) by and among the Company, the Borrowers, the lenders party thereto and Wells Fargo Bank, N.A., as administrative agent. The Credit Agreement provides for a senior secured revolving credit facility (the “Revolving Credit Facility”) in an aggregate principal amount of up to $100.0 million, which principal amount may be increased, subject to receiving additional commitments therefor among other items, by up to $50.0 million. There is a commitment fee on the unused portion of the line which varies between 0.5% and 0.75% depending on the prior quarter's consolidated total leverage ratio, as defined in the Credit Agreement. The unused line fee for the three and nine months ended September 30, 2013 was $0.2 million and $0.4 million, respectively and was charged to interest expense.

As of September 30, 2013, no amounts were outstanding under the Revolving Credit Facility.

Interest Expense

Interest expense is made up of the following (in thousands):



	Three months ended September 30,						Nine months ended September 30,
	2013			2012			2013			2012
3.25% Convertible Senior Notes due 2028	$	43		$	395		$	423		$	1,186
7.875% Senior Notes due 2021	5,906			—			15,947			—
Revolving Credit Facility	176			85			434			85
Kensington Term Facility (terminated in 2012)	—			459			—			2,339
Capital lease obligations	89			219			355			827
Other debt obligations	18			351			287			583
Accretion of Palmarejo gold production royalty obligation	4,023			4,384			12,192			15,047
Amortization of debt issuance costs	540			1,331			1,604			1,838
Accretion of debt discount	—			639			576			1,879
Capitalized interest	(1,133		)	(512		)	(1,494		)	(2,206		)
Total interest expense, net of capitalized interest	$	9,662		$	7,351		$	30,324		$	21,578