Long-term Debt and Other Financing (Notes)

6 Months Ended

Jun. 30, 2015

The Company’s debt balances were as follows:



	June 30, 2015			December 31, 2014
Credit Facility	$	595.0		$	605.0
8.75% Senior Secured Notes due December 2018	380.0			380.0
5.00% Exchangeable Senior Notes due November 2019 (effective rate of 10.8%)	150.0			150.0
7.625% Senior Notes due May 2020	529.8			529.8
7.625% Senior Notes due October 2021	427.5			430.0
8.375% Senior Notes due April 2022	290.2			290.2
Industrial Revenue Bonds due 2020 through 2028	99.3			99.3
Unamortized debt (discount) premium, net	(29.3		)	(31.8		)
Total long-term debt	$	2,442.5		$	2,452.5

During the six months ended June 30, 2015, the Company was in compliance with all the terms and conditions of its debt agreements.

Credit Facility

The Company has a $1.5 billion asset-backed revolving credit facility (the “Credit Facility”), which expires in March 2019 and is guaranteed by AK Steel’s parent company, AK Holding, and by two 100%-owned subsidiaries of AK Steel. The Credit Facility contains common restrictions, including limitations on, among other things, distributions and dividends, acquisitions and investments, indebtedness, liens and affiliate transactions. The Credit Facility requires the maintenance of a minimum fixed charge coverage ratio of one to one if availability under the Credit Facility is less than $150.0. Availability is calculated as the lesser of the Credit Facility commitment or the Company’s eligible collateral after advance rates, less, in either case, outstanding revolver borrowings and letters of credit. The Company’s obligations under its Credit Facility are secured by its inventory and accounts receivable, and availability under the Credit Facility fluctuates monthly based on the varying levels of eligible collateral. The Credit Facility includes a separate “first-in, last-out”, or “FILO” tranche, which allows the Company to maximize its eligible collateral at higher advance rates.

At June 30, 2015, the Company’s eligible collateral, after application of applicable advance rates, was $1,415.3. As of June 30, 2015, there were outstanding Credit Facility borrowings of $595.0. Availability as of June 30, 2015 was further reduced by $73.3 of outstanding letters of credit, resulting in remaining availability of $747.0.

Senior Unsecured Notes

During the second quarter of 2015, the Company repurchased an aggregate principal amount of $2.5 of the 7.625% Senior Notes due October 2021 in a private, unsolicited, open market transaction. This repurchase was completed at a discount to the senior unsecured notes’ par value and the Company recognized a gain on the repurchase of $0.4 for the quarter ended June 30, 2015.