Long-term Debt

12 Months Ended

Dec. 31, 2019

LONG-TERM DEBT



	December 31,
Dollar amounts in millions	2019									2018
	Interest Rate		Principal		Unamortized Debt Costs			Total		Principal			Unamortized Debt Costs			Total
Debentures:
Senior unsecured notes, maturing 2024, interest rates fixed	4.875	%	$	350	$	(3	)	$	347	$	350		$	(4	)	$	346
Bank credit facilities:
Chilean term credit facility, matured 2019, interest rates fixed	UF+3.9%		—		—			—		5			—			5
Other financing:
Financing leases			1		—			1		1			—			1
Total			351		(3		)	348		356			(4		)	352
Less: current portion			—		—			—		(5		)	—			(5		)
Long-term portion			$	351	$	(3	)	$	348	$	351		$	(4	)	$	347

In June 2019, we entered into an amended and restated credit agreement with various lenders and American AgCredit, PCA, as administrative agent and CoBank, ACB, as a letter of credit issuer. The credit agreement provides for a $350 million revolving credit facility, with a $60 million sub-limit for letters of credit. The credit facility terminates, and all loans made under the credit agreement become due on June 27, 2024. As of December 31, 2019 and 2018, no revolving borrowings were outstanding under the credit facility. Certain of LP’s existing and future wholly-owned domestic subsidiaries may guaranty our obligations under the credit facility and, subject to certain limited exceptions, provide security through a lien on substantially all of the personal property of these subsidiaries. Revolving borrowings under the credit agreement accrue interest, at our option, at either a “base rate” plus a margin of 0.875% to 2.00% or LIBOR plus a margin of 1.875% to 3.00%. The credit agreement also includes an unused commitment fee, due quarterly, ranging from 0.3% to 0.6%. The applicable margins and fees within these ranges are based on our ratio of consolidated EBITDA to cash interest charges. The “base rate” is the highest of (i) the Federal funds rate plus 0.5%, (ii) the U.S. prime rate, and (iii) one month LIBOR plus 1.0%.

The credit agreement contains various restrictive covenants and customary events of default. The credit agreement also contains a financial covenant that requires the Company and its consolidated subsidiaries to have, as of the end of each quarter, a capitalization ratio (i.e., funded debt to total capitalization) of no more than 50%. As of December 31, 2019, we were in compliance with all financial covenants under the credit agreement.

In September 2016, we issued $350 million aggregate principal amount of the 2024 Senior Notes, which mature on September 15, 2024. We may, at our option on one or more occasions, redeem all or any portion of these notes at the redemption prices set forth in the indenture governing the 2024 Senior Notes, plus accrued and unpaid interest, if any, to, but not including, the date of redemption. The indenture governing the 2024 Senior Notes contains certain covenants that, among other things, limit our ability to grant liens to secure indebtedness, engage in sale and leaseback transactions and merge or consolidate or sell all or substantially all of our assets. If we are subject to a "change of control," as defined in

the indenture, we are required to offer to repurchase the 2024 Senior notes at a purchase price equal to 101% of the principal amount thereof plus accrued and unpaid interest, if any, thereon to, but not including, the date of purchase. The indenture governing the 2024 Senior Notes contains customary events of default, including failure to make required payments on the 2024 Senior Notes, failure to comply with certain agreements or covenants contained in the indenture, failure to pay or acceleration of certain other indebtedness and certain events of bankruptcy and insolvency. An event of default in the indenture allows either the indenture trustee or the holders of at least 25% in aggregate principal amount of the then-outstanding 2024 Senior Notes to accelerate, or in certain cases, automatically causes the acceleration of, the amounts due under the 2024 Senior Notes.

The weighted average interest rate for all long-term debt at December 31, 2019 and 2018, was approximately 4.9%. Required repayment of principal for long-term debt is as follows:



Dollar amounts in millions
Years ending December 31,
2020	$	—
2021	1
2022	—
2023	—
2024	350
2025 and after	—
Total	$	351

Deferred debt costs are amortized over the life of the related debt using a straight-line basis, which approximates the effective interest method. We amortized deferred debt costs of $2 million, $1 million and $1 million for the years ended December 31, 2019, 2018 and 2017, respectively. Included in these amortized amounts are deferred debt costs associated with our current line of credit, which is recorded within "Other assets" on our Consolidated Balance Sheets.

We estimated the 2024 Senior Notes to have a fair value of $362 million and $338 million at December 31, 2019 and 2018, respectively, based upon market quotations. Our 2024 Senior Notes and other long-term debt were categorized as Level 1 in the U.S. GAAP fair value hierarchy. Fair values were based on trading activity among the Company’s lenders and the average bid and ask price as determined using published rates.