6.LONG-TERM DEBT

Long-term debt at December 31, 2014 and 2013 consisted of the following:



	December 31,		December 31,
Amounts in thousands	2014		2013
Credit agreement - Bank of Montreal	$	16,383	$	9,277
Credit agreement - Casinos Poland		3,446		4,798
Credit facility - Casinos Poland		1,506		1,447
Capital leases - Casinos Poland		108		207
Financing obligation - CDR land lease		16,806		18,330
Total long-term debt	$	38,249	$	34,059
Less current portion		(5,272)		(4,195)
Long-term portion	$	32,977	$	29,864

The consolidated weighted average interest rate on all Company debt was 7.95% for the year ended December 31, 2014. The Company pays a floating interest rate on its borrowings under the BMO Credit Agreement and the current interest rate is approximately 3.50%. The Company pays a weighted average interest rate of 5.26% on its borrowings under the CPL loan agreements. The weighted average interest rate on all Company debt is higher than the 3.50% interest rate of the BMO Credit Agreement and the weighted average interest of 5.26% on the CPL loan agreements due to the CDR financing obligation, on which the Company pays an implicit interest rate of 10.0%.

Credit Agreement – Bank of Montreal

In May 2012, the Company, through its Canadian subsidiaries, entered into the CAD 28.0 million credit agreement with the Bank of Montreal. On August 15, 2014, the Company, through its Canadian subsidiaries, entered into an amended and restated BMO Credit Agreement that increased the Company’s borrowing capacity to CAD 39.1 million. As of December 31, 2014, the Company had borrowed CAD 24.0 million, of which the outstanding balance was CAD 19.0 million ( $16.4 million based on the exchange rate in effect on December 31, 2014) and the Company had approximately CAD 15.1 million ( $13.0 million based on the exchange rate in effect on December 31, 2014) available under the BMO Credit Agreement. The outstanding borrowings cannot be re-borrowed once they are repaid. The Company has used borrowings under the BMO Credit Agreement primarily to repay the Company’s mortgage loan related to the Edmonton property, pay for the additional 33.3% investment in CPL (Note 3) and pay for development costs related to the REC project (Note 3). The Company can also use the proceeds to pursue the development or acquisition of new gaming opportunities and for general corporate purposes. Borrowings bear interest at fixed rates or at BMO’s floating rate plus a margin. Any funds not drawn down under the BMO Credit Agreement are subject to standby fees ranging from 0.50% to 0.75% payable quarterly in arrears. Standby fees of less than CAD 0.1 million (less than $0.1 million based on the exchange rate in effect on December 31, 2014) were recorded as interest expense in the consolidated statement of earnings for the year ended December 31, 2014. The BMO Credit Agreement has a term of five years through August 2019 and is guaranteed by the Company. The shares of the Company’s subsidiaries in Edmonton and Calgary and the Company’s 15% interest in CDR are pledged as collateral for the BMO Credit Agreement. The BMO Credit Agreement contains a number of financial covenants applicable to the Canadian subsidiaries, including restricting their incurrence of additional debt, a debt to EBITDA ratio, a fixed charge coverage ratio, maintenance of a CAD 28 million equity balance and a capital expenditure limit of CAD 2 million per year. The Company was in compliance with all covenants of the BMO Credit Agreement as of December 31, 2014.

Amortization expenses relating to deferred financing charges were $0.1 million for each of the years ended December 31, 2014 and December 31, 2013. These costs are included in interest expense in the consolidated statements of earnings.

Casinos Poland

As of December 31, 2014, CPL had debt totaling PLN 17.9 million ($5.1 million based on the exchange rate in effect on December 31, 2014). The debt includes two credit agreements, one credit facility and 11 capital lease agreements.

The first credit agreement is with mBank (formerly known as BRE Bank). Under this agreement, CPL entered into a three year term loan in November 2013 at an interest rate of Warsaw Interbank Offered Rate (“WIBOR”) plus 1.75%. Proceeds from the loan were used to repay the balance of the Bank Pocztowy loan related to the CPL properties, invest in slot equipment and relocate the Company’s Poznan, Poland casino. As of December 31, 2014, the amount outstanding was PLN 9.2 million ($2.6 million based on the exchange rate in effect on December 31, 2014). CPL has no further borrowing availability under the loan, and the loan matures in November 2016. The mBank credit agreement contains a number of financial covenants applicable to CPL, including covenants that restrict the incurrence of additional debt and require CPL to maintain debt ratios and a current liquidity ratio of 0.6 or higher. As of December 31, 2014, CPL’s current liquidity ratio was 0.5. CPL has obtained a waiver from mBank regarding its noncompliance with the current liquidity ratio. CPL was in compliance with all other covenants of this credit agreement as of December 31, 2014.

The second credit agreement is also with mBank. Under this credit agreement, CPL entered into the three year term loan at an interest rate of WIBOR plus 1.70%. Proceeds from the loan were used to repay balances outstanding under a prior credit agreement that matured in September 2014 and to finance current operations. As of December 31, 2014, the amount outstanding was PLN 3.0 million ($0.8 million based on the exchange rate in effect on December 31, 2014). CPL has no further borrowing availability under the loan and the loan matures in September 2017. The mBank credit agreement contains a number of financial covenants applicable to CPL, including covenants that restrict the incurrence of additional debt and require CPL to maintain debt ratios and a current liquidity ratio of 0.6 or higher. As of December 31, 2014, CPL’s current liquidity ratio was 0.5. CPL has obtained a waiver from mBank regarding its noncompliance with the current liquidity ratio. CPL was in compliance with all other covenants of this credit agreement as of December 31, 2014.

The credit facility is a short-term line of credit with BPH Bank used to finance current operations. The bank line of credit bears an interest rate of WIBOR plus 1.85%. The credit facility terminates on February 13, 2016. As of December 31, 2014, the amount outstanding was PLN 5.3 million ($1.5 million based on the exchange rate in effect on December 31, 2014) and CPL had approximately PLN 5.7 million ($1.6 million based on the exchange rate in effect on December 31, 2014) available under the facility. The BPH Bank facility contains a number of financial covenants applicable to CPL, including restricting incurrence of additional debt and debt to EBITDA ratios. CPL complied with all covenants of the BPH Bank line of credit as of December 31, 2014.

CPL’s remaining debt consists of 11 capital lease agreements for various vehicles. As of December 31, 2014, the amount outstanding was PLN 0.4 million ($0.1 million based on the exchange rate in effect on December 31, 2014).

In addition, under Polish gaming law, CPL is required to maintain PLN 3.6 million in the form of deposits or bank guarantees for payment of casino jackpots and gaming tax obligations. mBank issued guarantees to CPL for this purpose totaling PLN 3.6 million ($1.0 million based on the exchange rate in effect as of December 31, 2014). The mBank guarantees are secured by land owned by CPL in Kolbaskowo, Poland and terminate on October 31, 2019. In addition, CPL is required to maintain deposits or provide bank guarantees for payment of additional prizes and giveaways at the casinos. The amount of these deposits varies depending on the value of the prizes. CPL maintained $0.3 million in deposits for this purpose in each of the years ending December 31, 2014 and 2013.

Century Downs Racetrack and Casino

The financing obligation represents the land lease with CDR. Prior to the Company’s acquisition of its ownership interest in CDR on November 29, 2013, CDR had purchased various plots of land on which the REC project is being constructed. CDR sold a portion of this land consisting of 71.99 acres to Rosebridge. CDR then entered into an agreement with Rosebridge to lease back 51.99 acres of the land. The Company began accounting for the lease using the financing method as of the date of acquisition. Under the financing method, the Company accounts for the land subject to lease as an asset and the lease payments as interest on the financing obligation. Under the land lease, CDR has four options to purchase the land. The first option is July 1, 2023. Due to the nature of the CDR land lease financing obligation, there are no principal payments due until the Company exercises its option to purchase the land. Lease payments are applied to interest only, and any change in the outstanding balance of the financing obligation relates to foreign currency translation. As of December 31, 2014, the outstanding balance on the financing obligation was CAD 19.5 million ($16.8 million based on the exchange rate in effect on December 31, 2014) and the implicit interest rate was 10.0%.

As of December 31, 2014, scheduled maturities related to long-term debt are as follows:



Amounts in thousands	Bank of Montreal		Century Downs		Casinos Poland		Total
2015	$	2,073	$	0	$	3,199	$	5,272
2016		2,073		0		1,606		3,679
2017		2,073		0		255		2,328
2018		2,073		0		0		2,073
2019		2,073		0		0		2,073
Thereafter		6,018		16,806		0		22,824
Total	$	16,383	$	16,806	$	5,060	$	38,249