Debt

9 Months Ended

Sep. 30, 2023

Debt Disclosure [Abstract]

Debt Disclosure

DEBT

	September 30, 2023				December 31, 2022
In thousands	Current		Non-Current		Current		Non-Current
2029 Senior Notes, net(1)	$	—	$	303,010	$	—	$	369,212
Revolving Credit Facility(2)	—		140,000		—		80,000
Finance lease obligations	22,127		47,104		24,578		42,143
	$	22,127	$	490,114	$	24,578	$	491,355

(1) Net of unamortized debt issuance costs of $4.2 million and $5.8 million at September 30, 2023 and December 31, 2022, respectively.

(2) Unamortized debt issuance costs of $3.3 million and $3.6 million at September 30, 2023 and December 31, 2022, respectively, included in Other Non-Current Assets.

2029 Senior Notes

In March 2021, the Company completed an offering of $375.0 million in aggregate principal amount of 5.125% senior notes due 2029 in a private placement conducted pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as amended (the “Securities Act”), for net proceeds of approximately $367.5 million (the “2029 Senior Notes”). For more details, please see Note 10 -- Debt contained in the 2022 10-K.

During the three and nine months ended September 30, 2023, the Company exchanged $19.3 million and $67.8 million in aggregate principal amount of 2029 Senior Notes plus accrued interest for 7.6 million and 21.6 million shares of common stock, respectively. Based on the closing price of the Company’s common stock on the date of the exchanges, the exchanges resulted in an aggregate gain of $3.7 million on debt extinguishment. The exchange transactions represent non-cash financing activity in the Condensed Consolidated Statement of Cash Flow.

Revolving Credit Facility

At September 30, 2023, the Company had $140.0 million drawn at a weighted-average interest rate of 9.2%, $29.6 million in outstanding letters of credit and $220.4 million available under its $390 million revolving credit facility (the “RCF”). Future borrowing may be subject to certain financial covenants. For more details, please see Note 10 -- Debt contained in the 2022 10-K.

On August 9, 2023, the Company entered into an amendment (the “August Amendment”) to the RCF. The August Amendment, among other things, (1) modifies the financial covenants to provide greater flexibility during the final stages of the Rochester expansion under (a) the consolidated net leverage and consolidated senior secured leverage ratios at September 30, 2023 through the March 31, 2024, with the ratios returning to the previous levels at June 30, 2024 and (b) the consolidated interest coverage ratio at June 30, 2023 through September 30, 2023 with the ratio returning to the previous level at December 31, 2023, (2) allows up to $50 million, through June 30, 2024, stepping down to $40 million in September 31, 2024, $30 million in December 31, 2024 and $15 million thereafter, for integration costs or costs associated with establishing new facilities and certain costs associated with LCM adjustments at Rochester to be excluded from the calculation of Consolidated EBITDA for purposes of the RCF, (3) increases the interest rate on certain borrowings through June 30, 2024, and (4) restricts certain acquisitions through March 31, 2024.

Finance Lease Obligations

From time to time, the Company acquires mining equipment and facilities under finance lease agreements. In the nine months ended September 30, 2023, the Company entered into new lease financing arrangements for mining equipment at Rochester and Kensington for $21.6 million. The new finance lease arrangements represent non-cash investing activities in the Condensed Consolidated Statement of Cash Flow. Additionally, Coeur secured a finance lease package for nearly $60.0 million in 2021, all of which has been funded as of September 30, 2023. This package was earmarked for planned equipment for the Rochester expansion project in 2021, 2022 and 2023 and has an interest rate of 5.2%. All finance lease obligations are recorded, upon lease inception, at the present value of future minimum lease payments. For more details, please see Note 9 -- Leases contained in the 2022 10-K.

Interest Expense

	Three Months Ended September 30,				Nine Months Ended September 30,
In thousands	2023		2022		2023		2022
2029 Senior Notes	$	4,097	$	4,805	13,409		$	14,414
Revolving Credit Facility	4,956		2,512		11,481		5,069
Finance lease obligations	1,035		1,341		2,788		3,916
Amortization of debt issuance costs	703		535		1,964		1,448
Other debt obligations	710		29		1,450		162
Capitalized interest	(4,099)		(3,290)		(9,389)		(9,339)
Total interest expense, net of capitalized interest	$	7,402	$	5,932	$	21,703	$	15,670