DEBT



	June 30, 2016				December 31, 2015
In thousands	Current		Non-Current		Current		Non-Current
3.25% Convertible Senior Notes due 2028	$	712	$	—	$	—	$	712
7.875% Senior Notes due 2021, net⁽¹⁾	—		373,957		—		373,433
Term Loan due 2020, net⁽²⁾	94,545		—		1,000		93,489
San Bartolomé Lines of Credit	—		—		—		4,571
Capital lease obligations	13,552		28,300		9,431		7,774
	$	108,809	$	402,257	$	10,431	$	479,979

⁽¹⁾Net of unamortized debt issuance costs and premium received of $4.8 million and $5.3 million at June 30, 2016 and December 31, 2015, respectively.

⁽²⁾Net of unamortized debt issuance costs of $4.5 million and $5.0 million at June 30, 2016 and December 31, 2015, respectively.

7.875% Senior Notes due 2021

At any time prior to February 1, 2017, the Company may redeem all or part of the Senior Notes upon not less than 30 nor more than 60 days’ prior notice at a redemption price equal to the sum of 100% of the principal amount thereof, a make-whole premium as of the date of redemption, and accrued and unpaid interest and additional interest, if any, thereon, to the date of redemption. In addition, the Company may redeem some or all of the Senior Notes on or after February 1, 2017, at redemption prices set forth in the Indenture for the Senior Notes, together with accrued and unpaid interest.

3.25% Convertible Senior Notes due 2028

In accordance with the indenture governing the 3.25% Convertible Senior Notes due 2028 (the “Convertible Notes”), the Company announced on February 12, 2015 that it was offering to repurchase all of the Convertible Notes. At June 30, 2016, $0.7 million of the Convertible Notes remained outstanding. The Convertible Notes are classified as current liabilities at June 30, 2016 as a result of the Company's intent to repurchase the notes in the next twelve months.

Term Loan due 2020

On June 23, 2015, the Company and certain of its subsidiaries entered into a credit agreement for the Term Loan with Barclays Bank PLC, as administrative agent (the “Term Loan Credit Agreement”). The Term Loan Credit Agreement provides for a five year $100.0 million term loan to the Company, of which a portion of the proceeds were used to repay the Short-term Loan, and the remaining proceeds were used to be used for general corporate purposes. The Term Loan contains no financial maintenance covenants and at June 30, 2016 bears interest at 9.0% on $24.75 million of principal based on a Eurodollar rate plus a margin of 8.00% (at no time will the adjusted Eurodollar rate be deemed to be less than 1.00% per annum) and at a U.S. Prime Rate-based rate equal to 10.5% on $74.25 million of principal. Voluntary prepayments of the Term Loan under the Term Loan Credit Agreement are permitted, subject to the payment of a make-whole premium if such prepayment occurs prior to the first anniversary of the closing date, a premium of 105.0% of the principal amount between the first anniversary and the second anniversary of the closing date and a premium of 103.0% if such prepayment occurs on or after the second anniversary but prior to the third anniversary of the closing date. The Term Loan Credit Agreement requires amortization payments equal to 1.0% of the principal amount of the Term Loan per annum and also required net cash proceeds of debt issuances, excess cash flow, asset sales and casualty insurance recoveries (in each case, subject to certain exceptions) to either be reinvested in long-term assets used in the Company’s business or be applied as a mandatory prepayment of the Term Loan. At June 30, 2016, the Company has made amortization payments totaling $1.0 million. The obligations under the Term Loan are secured by substantially all of the assets of the Company and its domestic subsidiaries, including the land, mineral rights and infrastructure at the Kensington, Rochester and Wharf mines, as well as a pledge of the shares of certain of the Company's subsidiaries. The Term Loan Credit Agreement contains customary representations and warranties, events of default, and affirmative and negative covenants.

Lines of Credit

San Bartolomé had two available lines of credit for an aggregate amount of $27.0 million, both of which were undrawn at June 30, 2016.

Short-term Loan

On March 31, 2015, the Company entered into a credit agreement (the "Short-term Credit Agreement") with The Bank of Nova Scotia. The Short-term Credit Agreement provided for a $50.0 million loan (the "Short-term Loan") to the Company. The Short-term Loan generally bore interest at a rate equal to an adjusted Eurocurrency rate plus a margin of 2.50%. On June 25, 2015, the Short-term Loan was repaid in full, the security for the Short-term Loan was released, and the Short-term Credit Agreement was terminated.

Capital Lease Obligations

From time to time, the Company acquires mining equipment under capital lease agreements. During the six months ended June 30, 2016, the Company entered into new lease financing arrangements primarily for a haul truck fleet at its Rochester mine and mining equipment to support the continued underground mine expansion at the Palmarejo complex. All capital lease obligations are recorded, upon lease inception, at the present value of future minimum lease payments.

Palmarejo Gold Production Royalty Obligation

On January 21, 2009, Coeur Mexicana entered into a gold production royalty transaction with a subsidiary of Franco-Nevada Corporation under which the subsidiary of Franco-Nevada Corporation purchased a royalty covering 50% of the life of mine gold to be produced from the Palmarejo silver and gold mine in Mexico. This royalty excludes production from the recently acquired Paramount properties.

The royalty agreement provides for a minimum obligation to be paid monthly on a total of 400,000 ounces of gold, or 4,167 ounces per month over an initial eight year period. Each monthly payment is an amount equal to the greater of 4,167 ounces of gold or 50% of actual gold production multiplied by the excess of the monthly average market price of gold above $416 per ounce, subject to a 1% annual inflation compounding adjustment. Payments under the royalty agreement are made in cash or gold bullion. During the three months ended June 30, 2016 and 2015, the Company paid $10.5 million and $9.8 million, respectively and the Company paid $19.6 million and $20.1 million during the six months ended June 30, 2016 and 2015, respectively. At June 30, 2016, payments had been made on a total of 391,507 ounces of gold with further payments to be made on an additional 8,493 ounces of gold.

The Company used an implicit interest rate of 30.5% to discount the original royalty obligation, based on the fair value of the consideration received projected over the expected future cash flows at inception of the obligation. The discounted obligation is accreted to its expected future value over the expected minimum payment period based on the implicit interest rate. The Company recognized accretion expense for the three months ended June 30, 2016 and 2015 of $0.4 million and $1.8 million, respectively, and $1.2 million and $3.8 million for the six months ended June 30, 2016 and 2015, respectively. At June 30, 2016 and December 31, 2015, the remaining minimum obligation under the royalty agreement was $4.1 million and $15.2 million, respectively.

Interest Expense



	Three months ended June 30,						Six months ended June 30,
In thousands	2016			2015			2016			2015
3.25% Convertible Senior Notes due 2028	$	6		$	6		$	12		$	43
7.875% Senior Notes due 2021	7,457			8,523			14,913			17,085
Short-term Loan	—			326			—			326
Term Loan due 2020	2,258			148			4,521			148
San Bartolomé Lines of Credit	—			293			15			565
Capital lease obligations	416			272			680			570
Other debt obligations	15			—			29			—
Accretion of Palmarejo gold production royalty obligation	397			1,771			1,162			3,802
Amortization of debt issuance costs	631			508			1,262			913
Accretion of debt premium	(91		)	(104		)	(182		)	(209		)
Capitalized interest	(214		)	(1,009		)	(417		)	(1,744		)
Total interest expense, net of capitalized interest	$	10,875		$	10,734		$	21,995		$	21,499