NOTE 6: DEBT

Debt at December 31 is summarized as follows:



in thousands	2014	2013
Short-term Debt
Bank line of credit	$ 0	$ 0
Total short-term debt	$ 0	$ 0
Long-term Debt
10.125% notes due 2015 1	$ 150,973	$ 151,897
6.50% notes due 2016 2	126,969	511,627
6.40% notes due 2017 3	218,589	349,907
7.00% notes due 2018 4	399,816	399,772
10.375% notes due 2018 5	249,030	248,843
7.50% notes due 2021 6	600,000	600,000
8.85% notes due 2021 7	6,000	6,000
Industrial revenue bond due 2022 8	14,000	14,000
7.15% notes due 2037 9	239,570	239,561
Other notes	637	806
Total long-term debt including current maturities	$ 2,005,584	$ 2,522,413
Less current maturities	150,137	170
Total long-term debt	$ 1,855,447	$ 2,522,243
Estimated fair value of long-term debt	$ 2,113,478	$ 2,820,399


1	Includes an increase for the unamortized portion of the deferred gain realized upon the August 2011 settlement of interest rate swaps, as follows: December 31, 2014 — $1,068 thousand and December 31, 2013 — $2,082 thousand. Additionally, includes decreases for unamortized discounts as follows: December 31, 2014 — $95 thousand and December 31, 2013 — $185 thousand. The effective interest rate for these notes is 9.58%.
2	Includes an increase for the unamortized portion of the deferred gain realized upon the August 2011 settlement of interest rate swaps, as follows: December 31, 2014 — $1,968 thousand and December 31, 2013 — $11,627 thousand. The effective interest rate for these notes is 6.00%.
3	Includes decreases for unamortized discounts, as follows: December 31, 2014 — $44 thousand and December 31, 2013 — $93 thousand. The effective interest rate for these notes is 7.39%.
4	Includes decreases for unamortized discounts, as follows: December 31, 2014 — $184 thousand and December 31, 2013 — $228 thousand. The effective interest rate for these notes is 7.87%.
5	Includes decreases for unamortized discounts, as follows: December 31, 2014 — $970 thousand and December 31, 2013 — $1,157 thousand. The effective interest rate for these notes is 10.625%.
6	The effective interest rate for these notes is 7.75%.
7	The effective interest rate for this note is 8.88%.
8	This variable-rate tax-exempt bond is backed by a letter of credit.
9	Includes decreases for unamortized discounts, as follows: December 31, 2014 — $618 thousand and December 31, 2013 — $627 thousand. The effective interest rate for these notes is 8.05%.

Our long-term debt is presented in the table above net of unamortized discounts from par and unamortized deferred gains realized upon settlement of interest rate swaps. Discounts and deferred gains are being amortized using the effective interest method over the respective terms of the notes.

The estimated fair value of long-term debt presented in the table above was determined by averaging the asking price quotes for the notes. The fair value estimates were based on Level 2 information (as defined in Note 1, caption Fair Value Measurements) available to us as of their respective balance sheet dates. Although we are not aware of any factors that would significantly affect the estimated fair value amounts, such amounts have not been revalued since those dates.

Our long-term debt is unsecured and essentially all such debt agreements contain customary investment-grade type covenants that primarily limit the amount of secured debt we may incur without ratably securing the outstanding debt. Our debt may be redeemed prior to maturity at the greater of par value and the make-whole value plus accrued and unpaid interest.

There were no material scheduled debt payments during 2014. However, as described below, we purchased $506,366,000 principal amount of debt through a tender offer in the first quarter of 2014. Scheduled debt payments during 2013 included $10,000,000 in January to retire the 8.70% medium-term note and $140,444,000 in June to retire the 6.30% notes.

The total scheduled (principal and interest) debt payments, excluding draws, if any, on the line of credit, for the five years subsequent to December 31, 2014 are as follows:



in thousands	Total	Principal	Interest
Debt Payments (excluding the line of credit)
2015	$ 304,162	$ 150,137	$ 154,025
2016	263,975	125,131	138,844
2017	349,482	218,771	130,711
2018	752,732	650,022	102,710
2019	62,794	23	62,771

In March 2014, we purchased $506,366,000 principal amount of debt through a tender offer as follows: $374,999,000 of 6.50% notes due in 2016 and $131,367,000 of 6.40% notes due in 2017. This debt purchase was funded by the sale of our cement and concrete businesses in the Florida area as described in Note 19. The March 2014 debt purchases cost $579,659,000, including a $71,829,000 premium above the principal amount of the notes and transaction costs of $1,464,000. The premium primarily reflects the trading prices of the notes relative to par prior to the tender offer commencement. Additionally, we recognized a net benefit of $344,000 associated with the acceleration of a proportional amount of unamortized discounts, deferred gains, deferred financing costs and amounts accumulated in OCI. The combined charge of $72,949,000 is presented in the accompanying Consolidated Statement of Comprehensive Income as a component of interest expense for the year ended December 31, 2014.

Additionally, in March 2014, we amended our $500,000,000 line of credit to, among other items, extend the term from March 2018 to March 2019. The line of credit is secured by accounts receivable and inventory, but will become unsecured upon the achievement of certain credit metrics and/or credit ratings. The line of credit also contains negative and financial covenants customary for a secured facility.

The negative covenants primarily limit our ability to: (1) incur secured debt, (2) make certain investments, (3) execute acquisitions and divestitures, and (4) make restricted payments, including dividends. Such limitations currently do not impact our ability to execute our strategic, operating and financial plans, and become less restrictive when the line of credit becomes unsecured as described above.

The line of credit contains two financial covenants: (1) a maximum ratio of debt to EBITDA that declines over time to 3.5:1 and (2) a minimum ratio of EBITDA to net cash interest expense that increases over time to 3.0:1.

As of December 31, 2014, we were in compliance with our long-term debt and line of credit covenants.

Borrowings on our line of credit are classified as short-term due to our intent to repay any borrowings within twelve months. As of December 31, 2014, our available borrowing capacity was $446,450,000. Borrowings under the line of credit bear interest at a rate determined at the time of borrowing equal to LIBOR plus a margin ranging from 1.50% to 2.25%, or an alternative rate derived from the lender's prime rate, based on our ratio of debt to EBITDA. As of December 31, 2014, the applicable margin for LIBOR based borrowings was 1.50%.

Standby letters of credit issued under the line of credit reduce availability and are charged a fee equal to the margin for LIBOR based borrowings plus 0.175%. We also pay a commitment fee on the daily average unused amount of the line of credit. This commitment fee ranges from 0.25% to 0.40% based on our ratio of debt to EBITDA. At December 31, 2014, the commitment fee was 0.25%. Once the line of credit becomes unsecured, both the LIBOR margin range for borrowings and the commitment fee range will decline.