Long-Term Debt (Tables)

3 Months Ended

Mar. 31, 2019

Debt Disclosure [Abstract]

Schedule of Revolving Credit Facility and Long-Term Debt

Our long-term debt consists of the following: 

	March 31,			December 31,
	2019			2018
	(In Thousands)
Working Capital Revolver Loan, with a current interest    rate of 6.0% (A)	$	10,000		$	10,000
Senior Secured Notes due 2023 (B)		400,000			400,000
Secured Promissory Note due 2019, with a current interest    rate of 5.73% (C)		6,906			7,165
Secured Promissory Note due 2021, with a current interest    rate of 5.25% (D)		7,269			8,090
Secured Promissory Note due 2023, with a current interest    rate of 6.74% (E)		14,190			14,685
Other (F)		981			221
Unamortized discount and debt issuance costs		(14,158	)		(14,962	)
		425,188			425,199
Less current portion of long-term debt, net		12,275			12,518
Long-term debt due after one year, net	$	412,913		$	412,681

(A) As amended in February 2019, our revolving credit facility (the “Working Capital Revolver Loan”) provides for advances up to $75million, based on specific percentages of eligible accounts receivable and inventories and up to $10million of letters of credit, the outstanding amount of which reduces the available for borrowing under the Working Capital Revolver Loan.  At March 31, 2019, our available borrowings under our Working Capital Revolver Loan were approximately $40.1 million, based on our eligible collateral, less outstanding letters of credit. The maturity date of the Working Capital Revolver Loan is February 26, 2024. The Working Capital Revolver Loan also provides for a springing financial covenant (the “Financial Covenant”), which requires that, if the borrowing availability is less than 10.0% of the total revolver commitments, then the borrowers must maintain a minimum fixed charge coverage ratio of not less than 1.00 to 1.00.  The Financial Covenant, if triggered, is tested monthly.

5. Long-Term Debt (continued)

(B)On April 25, 2018, LSB completed the issuance and sale of $400 million aggregate principal amount of its 9.625% Senior Secured Notes due 2023 (the “Senior Secured Notes”).  The Senior Secured Notes were issued at a price equal to 99.509% of their face value.  The Senior Secured Notes mature on May 1, 2023.  Interest is to be paid semiannually in arrears on May 1^st and November 1^st.

(C)El Dorado Chemical Company (“EDC”), one of our subsidiaries, is party to a secured promissory note due in June 2019. Principal and interest are payable in equal monthly installments with a final balloon payment of approximately $6.7 million.

(D) EDC is party to a secured promissory note due in March 2021. Principal and interest are payable in monthly installments.

(E) El Dorado Ammonia L.L.C. (“EDA”), one of our subsidiaries, is party to a secured promissory note due in May 2023. Principal and interest are payable in equal monthly installments with a final balloon payment of approximately $6.1 million.

(F) Includes $0.8 million relating to a secured loan agreement EDC entered during March 2019. Under the terms of the agreement, EDC has up to $7.5 million of available borrowings (the “Interim Loan”) during the construction of certain equipment (the “Interim Loan Period), subject to certain conditions.  During the Interim Loan Period, interest only is payable in monthly installments. The Interim Loan will be replaced by a term loan upon completion of the construction, which is expected to be during 2019.  Principal and interest will be payable in 60 equal monthly installments under the term loan.