Debt

Borrowing Arrangements

The Company maintains a borrowing arrangement with a syndicate of banks, which was amended on March 4, 2014, and provides the Company with $850 million in lines of credit. The Company can designate up to $400 million of borrowings as long-term when the debt is used for long-term purposes, such as replacing long-term debt that is maturing, funding the purchase of long-term assets, or increasing permanent working capital when needed. It also provides the Company with $90 million in letters of credit. Any amounts outstanding on letters of credit will reduce the amount available on the line of credit. The Company had standby letters of credit outstanding of $30.7 million at December 31, 2014. As of December 31, 2014, the Company had no outstanding borrowings on the line of credit. Borrowings under the line of credit bear interest at variable interest rates, which are based off LIBOR plus an applicable spread. The maturity date for the line of credit is March 2019. Draw downs and repayments that are less than 90 days are recorded on a net basis in the Consolidated Statements of Cash Flows.

The Company also has $28.1 million of lines of credit related to The Andersons Denison Ethanol LLC ("TADE"), a consolidated subsidiary. TADE entered into borrowing arrangements with a syndicate of financial institutions upon acquisition of the entity in the second quarter of 2012 which provided a $13.0 million short-term line of credit and a $15.1 million long-term line of credit. TADE had standby letters of credit outstanding of $0.4 million at December 31, 2014, which reduces the amount available on the lines of credit. As of December 31, 2014, the Company had no outstanding borrowings on the lines of credit. Borrowings under the lines of credit and the term loan bear interest at variable interest rates, which are based off LIBOR plus an applicable spread. The maturity date is July 1, 2015 for the short-term line of credit and April 20, 2021 for the long-term line of credit. TADE was in compliance with all financial and non-financial covenants as of December 31, 2014, including but not limited to minimum working capital and net worth. TADE debt is collateralized by the mortgage on the ethanol facility and related equipment or other assets and is not guaranteed by the Company, therefore it is considered non-recourse debt.

The Company’s short-term and long-term debt at December 31, 2014 and 2013 consisted of the following:



	December 31,
(in thousands)	2014		2013
Short-term debt - non-recourse	$	—	$	—
Short-term debt - recourse	2,166		—
Total short-term debt	$	2,166	$	—
Current maturities of long -term debt – non-recourse	$	—	$	6,012
Current maturities of long-term debt – recourse	76,415		45,986
Total current maturities of long-term debt	$	76,415	$	51,998
Long-term debt, less current maturities – non-recourse	$	—	$	4,063
Long-term debt, less current maturities – recourse	298,638		371,150
Total long-term debt, less current maturities	$	298,638	$	375,213

The following information relates to short-term borrowings:



	December 31,
(in thousands, except percentages)	2014			2013			2012
Maximum amount borrowed	$	270,600		$	315,000		$	553,400
Weighted average interest rate	1.69		%	1.92		%	1.96		%

Long-Term Debt

Recourse Debt

Long-term debt consists of the following:



	December 31,
(in thousands, except percentages)	2014		2013
Senior note payable, 6.10%, payable at maturity, due 2014	$	—	$	25,000
Senior note payable, 6.12%, payable at maturity, due 2015	61,500		61,500
Senior note payable, 3.72%, payable at maturity, due 2017	25,000		25,000
Senior note payable, 6.78%, payable at maturity, due 2018	41,500		41,500
Note payable, 4.92%, $2 million annually ($2.3 million for 2014), plus interest, due 2021 (a)	24,911		27,178
Note payable, 4.76%, payable in increasing amounts ($1.8 million for 2014) plus interest, due 2028 (a)	51,818		53,600
Note payable, variable rate (2.66% at December 31, 2014), payable in increasing amounts ($1.2 million for 2014) plus interest, due 2023 (a)	21,791		23,015
Note payable, 3.29%, payable in increasing amounts ($1.2 million for 2014) plus interest, due 2022 (a)	24,159		25,366
Note payable, 4.23%, payable quarterly in varying amounts ($0.1 million for 2014) plus interest, due 2021 (a)	12,382		—
Notes payable, variable rate (1.40% at December 31, 2014), payable in varying amounts, ($22.4 million for 2014) plus interest, due 2016	5,043		22,120
Note payable, variable rate (1.57% at December 31, 2014), payable in increasing amounts ($1.0 million for 2014) plus interest, due 2023 (a)	10,890		11,865
Note payable, variable rate (0.97% at December 31, 2014), $0.7 million annually, plus interest, due 2016 (a)	8,050		8,750
Note payable, 8.5%, payable monthly in varying amounts ($1.0 million for 2014) plus interest, due 2016 (a)	—		988
Note payable, 4.76%, payable quarterly in varying amounts ($0.3 million for 2014) plus interest, due 2028 (a)	9,654		9,980
Note payable, 3.56%, payable monthly in varying amounts plus interest, due 2021 (a)	—		3,459
Industrial development revenue bonds:
Variable rate (2.54% at December 31, 2014), payable at maturity, due 2017 (a)	7,461		7,934
Variable rate (1.51% at December 31, 2014), payable at maturity, due 2019 (a)	4,650		4,650
Variable rate (1.49% at December 31, 2014), payable at maturity, due 2025 (a)	3,100		3,100
Variable rate (1.43% at December 31, 2014), payable at maturity, due 2036 (a)	21,000		21,000
Debenture bonds, 2.65% to 5.00%, due 2015 through 2029	42,098		41,131
Other notes payable and bonds	46		—
	375,053		417,136
Less: current maturities	76,415		45,986
	$	298,638	$	371,150


(a)	Debt is collateralized by first mortgages on certain facilities and related equipment or other assets with a book value of $123.1 million

The Company assumed a $12.5 million note payable as part of the Auburn Bean and Grain acquisition (discussed in Note 12).

At December 31, 2014, the Company had $3.3 million of five-year term debenture bonds bearing interest at 2.65%, $3.5 million of ten-year term debenture bonds bearing interest at 3.50% and $1.7 million of fifteen-year term debenture bonds bearing interest at 4.50% available for sale under an existing registration statement.

The Company's short-term and long-term borrowing agreements include both financial and non-financial covenants that, among other things, require the Company at a minimum to maintain:


•	tangible net worth of not less than $300 million;


•	current ratio net of hedged inventory of not less than 1.25 to 1.00;


•	debt to capitalization ratio of not more than 70%;


•	asset coverage ratio of not more than 75%; and


•	interest coverage ratio of not less than 2.75 to 1.00.

The Company was in compliance with all covenants at and during the years ended December 31, 2014 and 2013.

The aggregate annual maturities of long-term debt are as follows: 2015 -- $76.1 million; 2016 -- $27.5 million; 2017 -- $47.5 million; 2018 -- $53.6 million; 2019 -- $15.2 million; and $153.3 million thereafter.

Non-Recourse Debt

The Company's non-recourse debt, including the lines of credit, held by TADE includes separate financial covenants relating solely to the collateralized TADE assets. The covenants require the following:


•	tangible net worth of not less than $33 million (increasing to $36 million effective December 31, 2015 and $40 million effective December 31, 2016);


•	working capital not less than $8 million; and


•	debt service coverage ratio of not less than 1.25 to 1.00.