Current and Long-Term Financing

Financing arrangements are obtained and maintained at the subsidiary level. NACCO has not guaranteed any borrowings of its subsidiaries.

The following table summarizes the Company's available and outstanding borrowings:



	December 31
	2015			2014
Total outstanding borrowings:
Revolving credit agreements:
NACoal	$	100,000		$	180,000
HBB	57,513			52,845
KC	—			—
	$	157,513		$	232,845

Capital lease obligations and other term loans — NACoal	$	11,617		$	14,445
Other debt — HBB	852			608
Total debt outstanding	$	169,982		$	247,898

Current portion of borrowings outstanding:
NACoal	$	1,504		$	56,467
HBB	8,365			—
KC	—			—
	$	9,869		$	56,467
Long-term portion of borrowings outstanding:
NACoal	$	110,113		$	137,978
HBB	50,000			53,453
	$	160,113		$	191,431
Total available borrowings, net of limitations, under revolving credit agreements:
NACoal	$	223,795		$	223,995
HBB	111,590			112,105
KC	18,299			22,596
	$	353,684		$	358,696
Unused revolving credit agreements:
NACoal	$	123,795		$	43,995
HBB	54,077			59,260
KC	18,299			22,596
	$	196,171		$	125,851
Weighted average stated interest rate on total borrowings:
NACoal	2.4		%	2.5		%
HBB	2.3		%	2.0		%
KC	N/A			N/A

Weighted average effective interest rate on total borrowings (including interest rate swap agreements):
NACoal	3.3		%	3.1		%
HBB	2.7		%	2.5		%
KC	N/A			N/A

Annual maturities of total debt, excluding capital leases, are as follows:



2016	$	—
2017	—
2018	100,000
2019	59,811
2020	—
Thereafter	—
	$	159,811

Including swap settlements, interest paid on total debt was $6.5 million, $7.4 million and $5.3 million during 2015, 2014 and 2013, respectively. Interest capitalized was less than $0.1 million in 2015 and $0.3 million in 2014.

NACoal: NACoal has an unsecured revolving line of credit of up to $225.0 million (the “NACoal Facility”) that expires in November 2018. Borrowings outstanding under the NACoal Facility were $100.0 million at December 31, 2015. At December 31, 2015, the excess availability under the NACoal Facility was $123.8 million, which reflects a reduction for outstanding letters of credit of $1.2 million.

The NACoal Facility has performance-based pricing, which sets interest rates based upon NACoal achieving various levels of debt to EBITDA ratios, as defined in the NACoal Facility. Borrowings bear interest at a floating rate plus a margin based on the level of debt to EBITDA ratio achieved. The applicable margins, effective December 31, 2015, for base rate and LIBOR loans were 1.00% and 2.00%, respectively. The NACoal Facility has a commitment fee which is based upon achieving various levels of debt to EBITDA ratios. The commitment fee was 0.35% on the unused commitment at December 31, 2015. The weighted average interest rate applicable to the NACoal Facility at December 31, 2015 was 3.39% including the floating rate margin and the effect of the interest rate swap agreements.

The NACoal Facility contains restrictive covenants, which require, among other things, NACoal to maintain a maximum debt to EBITDA ratio of 3.50 to 1.00 and an interest coverage ratio of not less than 4.00 to 1.00. The NACoal Facility provides the ability to make loans, dividends and advances to NACCO, with some restrictions based on maintaining a maximum debt to EBITDA ratio of 3.00 to 1.00 in conjunction with maintaining unused availability thresholds of borrowing capacity, as defined in the NACoal Facility, of $15.0 million. At December 31, 2015, NACoal was in compliance with all financial covenants in the NACoal Facility.

NACoal has a demand note payable to Coteau, one of the unconsolidated subsidiaries, which bears interest based on the applicable quarterly federal short-term interest rate as announced from time to time by the Internal Revenue Service. At December 31, 2015, the balance of the note was $1.4 million and the interest rate was 0.55%.

NACoal incurred fees and expenses of $1.2 million in the year ended December 31, 2013 related to the NACoal Facility. These fees were deferred and are being amortized as interest expense in the Consolidated Statements of Operations over the term of the NACoal Facility. No similar fees were incurred in 2015 and 2014.

HBB: HBB has a $115.0 million senior secured floating-rate revolving credit facility (the “HBB Facility”) that expires in July 2019. The obligations under the HBB Facility are secured by substantially all of HBB's assets. The approximate book value of HBB's assets held as collateral under the HBB Facility was $253.9 million as of December 31, 2015. At December 31, 2015, the borrowing base under the HBB Facility was $111.6 million and borrowings outstanding were $57.5 million. At December 31, 2015, the excess availability under the HBB Facility was $54.1 million.

The maximum availability under the HBB Facility is governed by a borrowing base derived from advance rates against eligible accounts receivable, inventory and trademarks of the borrowers, as defined in the HBB Facility. Adjustments to reserves booked against these assets, including inventory reserves, will change the eligible borrowing base and thereby impact the liquidity provided by the HBB Facility. A portion of the availability is denominated in Canadian dollars to provide funding to HBB's Canadian subsidiary. Borrowings bear interest at a floating rate, which can be a base rate or LIBOR, as defined in the HBB Facility, plus an applicable margin. The applicable margins, effective December 31, 2015, for base rate loans and LIBOR loans denominated in U.S. dollars were 0.00% and 1.50%, respectively. The applicable margins, effective December 31, 2015, for base rate loans and bankers' acceptance loans denominated in Canadian dollars were 0.00% and 1.50%, respectively. The HBB Facility also requires a fee of 0.25% per annum on the unused commitment. The margins under the HBB Facility are subject to quarterly adjustment based on average excess availability. The weighted average interest rate applicable to the HBB Facility at December 31, 2015 was 2.72% including the floating rate margin and the effect of the interest rate swap agreement.

The HBB Facility includes restrictive covenants, which, among other things, limit the payment of dividends to NACCO, subject to achieving availability thresholds. Dividends are discretionary to the extent that for the thirty days prior to the dividend payment date, and after giving effect to the dividend payment, HBB maintains Excess Availability of not less than $25.0 million. The HBB Facility also requires HBB to achieve a minimum fixed charge coverage ratio in certain circumstances, as defined in the HBB Facility. At December 31, 2015, HBB was in compliance with all financial covenants in the HBB Facility.

HBB incurred fees and expenses of $0.2 million for the year ended December 31, 2014 related to the HBB Facility. These fees were deferred and are being amortized as interest expense in the Consolidated Statements of Operations over the term of the HBB Facility. No similar fees were incurred in 2015 and 2013.

KC: KC has a $25.0 million secured revolving line of credit that expires in September 2019 (the “KC Facility”). The obligations under the KC Facility are secured by substantially all assets of KC. The approximate book value of KC's assets held as collateral under the KC Facility was $53.4 million as of December 31, 2015. At December 31, 2015, the borrowing base and excess availability under the KC Facility were $18.3 million. KC had no borrowings outstanding under the KC Facility as of December 31, 2015.

The maximum availability under the KC Facility is derived from a borrowing base formula using KC's eligible inventory and eligible credit card accounts receivable, as defined in the KC Facility. Borrowings bear interest at a floating rate plus a margin based on the excess availability under the agreement, as defined in the KC Facility, which can be either a base rate plus a margin of 1.00% or LIBOR plus a margin of 2.00% as of December 31, 2015. The KC Facility also requires a fee of 0.32% per annum on the unused commitment.

The KC Facility allows for the payment of dividends to NACCO, subject to certain restrictions based on availability and meeting a fixed charge coverage ratio as described in the KC Facility. Dividends are limited to (i) $6.0 million in any twelve-month period, so long as KC has excess availability, as defined in the KC Facility, of at least $7.5 million after giving effect to such payment and maintaining a minimum fixed charge coverage ratio of 1.1 to 1.0, as defined in the KC Facility; (ii) $2.0 million in any twelve-month period, so long as KC has excess availability, as defined in the KC Facility, of at least $7.5 million after giving effect to such payment and (iii) in such amounts as determined by KC, so long as KC has excess availability under the KC Facility of $15.0 million after giving effect to such payment. At December 31, 2015, KC was in compliance with all financial covenants in the KC Facility.

KC incurred fees and expenses of $0.1 million in the year ended December 31, 2014 related to the KC Facility. These fees were deferred and are being amortized as interest expense in the Consolidated Statements of Operations over the term of the KC Facility. No similar fees were incurred in 2015 and 2013.