DEBT

6 Months Ended

Jun. 30, 2020

DEBT

DEBT

6.          DEBT

As of June 30, 2020 and December 31, 2019, the Company’s debt consisted of the following:

	June 30,		December 31,
(In millions)	2020		2019
Private Placement Term Loans:
5.79 %, payable through 2020	$	—	$	3.5
3.66 %, payable through 2023		27.4		31.9
4.16 %, payable through 2027		36.7		39.3
3.37 %, payable through 2027		75.0		75.0
3.14 %, payable through 2031		178.8		188.0
4.31 %, payable through 2032		29.0		30.3
4.35 %, payable through 2044		—		100.0
3.92 %, payable through 2045		—		69.5
Title XI Debt:
5.34 %, payable through 2028		18.7		19.8
5.27 %, payable through 2029		20.9		22.0
1.22 %, payable through 2043		185.9		—
1.35 %, payable through 2044		139.6		—
Revolving credit facility, maturity date of June 29, 2022		178.0		379.1
Total Debt		890.0		958.4
Less: Current portion		(50.5)		(48.4)
Total Long-term Debt		839.5		910.0
Less: Deferred loan fees		(16.0)		—
Total Long-term Debt, net of deferred loan fees	$	823.5	$	910.0

Except as described below, the Company’s debt is described in Note 6 to the Condensed Consolidated Financial Statements included in the Company’s Quarterly Report on Form 10-Q for the three months ended March 31, 2020.

Private Placement Term Loans: On May 12, 2020, the Company redeemed private placement term loans totaling $169.5 million at par out of proceeds from the Company’s revolving credit facility.

2020 Title XI Debt: On April 27, 2020, MatNav issued $185.9 million in U.S. Government guaranteed vessel financing bonds (Title XI) to partially refinance debt incurred in connection with the construction of Daniel K. Inouye (the “DKI Title XI Debt”). A fee of approximately $8.7 million was paid to the United States Maritime Administration (“MARAD”) out of the proceeds at closing. The net proceeds of approximately $177 million were used to reduce outstanding debt. The secured bonds mature on October 15, 2043 and have a cash interest rate of 1.22 percent, payable semi-annually in arrears on April 15 and October 15, commencing on October 15, 2020, together with a principal payment of approximately $4.0 million.

On June 22, 2020, MatNav issued $139.6 million in U.S. Government guaranteed vessel financing bonds (Title XI) to partially refinance debt incurred in connection with the construction of Kaimana Hila (together with the DKI Title XI Debt, the “2020 Title XI Debt”). A fee of approximately $6.7 million was paid to MARAD out of the proceeds at closing. The net proceeds of approximately $132.9 million were used to reduce outstanding debt. The secured bonds mature on March 15, 2044 and have a cash interest rate of 1.35 percent, payable semi-annually in arrears on March 15 and September 15, commencing on September 15, 2020, together with a principal payment of approximately $3.0 million.

Under the 2020 Title XI Debt agreements, MARAD has guaranteed the obligation of MatNav. MatNav has agreed to reimburse MARAD for any payments it makes under the MARAD guarantees and MatNav’s obligations to MARAD are secured by mortgages on the vessels and certain other related assets. The 2020 Title XI Debt is subject to the debt covenants as described in Note 6 to the Condensed Consolidated Financial Statements included in the Company’s Quarterly Report on Form 10-Q for the three months ended March 31, 2020.

Revolving Credit Facility: As of June 30, 2020, the Company had $433.2 million of remaining borrowing availability under the revolving credit facility. The Company used $8.1 million of the sublimit for letters of credit outstanding as of June 30, 2020. Based on the Company’s consolidated net leverage ratio, which stipulates borrowing margins, the interest rate applicable to revolving credit facility was approximately 3.25 percent at June 30, 2020. Borrowings under the revolving credit facility are classified as long-term debt in the Condensed Consolidated Balance Sheets, as principal payments are not required until the maturity date of June 29, 2022.

Debt Security and Guarantees: All of the debt of the Company and MatNav, including related guarantees, as of June 30, 2020 was unsecured, except for the 2020 Title XI Debt and other Title XI debt.

Debt Maturities: As of June 30, 2020, debt maturities during the next five years and thereafter are as follows:

	As of
Year (in millions)	June 30, 2020
Remainder of 2020	$	23.7
2021		59.2
2022		243.0
2023		60.4
2024		51.7
Thereafter		452.0
Total Debt	$	890.0

Deferred Loan Fees: Deferred loan fees are recorded as a reduction of Total Debt in the Condensed Consolidated Balance Sheets in accordance with Accounting Standards Codification (“ASC”) 835, Imputation of Interest (“ASC 835”). Activity relating to deferred loan fees for the six months ended June 30, 2020 are as follows:

Deferred Loan Fees (in millions)	Amount
Deferred financing costs related to Title XI bonds and private placement debt amendments	$	16.5
Deferred fees expensed related to the redemption of private placement debt		(0.3)
Amortization expense for the six months ended June 30, 2020		(0.2)
Balance at June 30, 2020	$	16.0

As of June 30, 2020, amortization expense relating to deferred loan fees during the next five years and thereafter are as follows:

Year (in millions)	Amount
Remainder of 2020	$	0.8
2021		1.5
2022		1.2
2023		1.1
2024		1.1
Thereafter		10.3
Total amortization expense of deferred loan fees	$	16.0