LONG-TERM DEBT

LP’s long-term debt consists of the following:



Dollars in millions	March 31, 2012			December 31, 2011
Debentures:
Senior secured notes, maturing 2017	$	191.2		$	189.6
Bank credit facilities:
Chilean term credit facility, maturing 2019, denominated in UF	43.7			40.5
Brazilian export financing facility, maturing 2017	10.0			10.0
Limited recourse notes payable:
Senior notes, payable 2012	7.9			7.9
Senior notes, payable 2013 - 2018	112.0			112.0
Other financing
Non-recourse notes, payable 2018	368.7			368.7
Other	0.3			0.4
Total	733.8			729.1
Less: current portion	(14.5		)	(13.2		)
Net long-term portion	$	719.3		$	715.9

LP issued $47.9 million ($7.9 million outstanding as March 31, 2012) of senior notes in 1997 in a private placement to institutional investors. The remaining notes are secured by $9.9 million in notes receivable from Sierra Pacific Industries and mature in 2012. In the event of a default by Sierra Pacific Industries, LP is fully liable for the notes payable with the underlying timberlands as security for the notes receivable.

LP issued $348.6 million ($112.0 million remaining outstanding as of March 31, 2012) of senior notes in 1998 in a private placement to institutional investors. The remaining notes mature in principal amounts of $90.0 million in 2013 and $22.0 million in 2018. The remaining notes are secured by $113.7 million of notes receivable from Green Diamond Resource Company (Green Diamond). Pursuant to the terms of the notes payable, in the event of a default by Green Diamond, LP would be liable to pay only 10% of the indebtedness represented by the notes payable with the underlying timberlands as security for the notes receivable.

LP issued $368.7 million of senior debt in 2003 in a private placement to unrelated third parties. The senior debt mature in 2018. The senior debt is supported by a bank letter of credit. LP’s reimbursement obligations under the letter of credit are secured by $410.0 million in notes receivable from assets sales. In general, the creditors under this arrangement have no recourse to LP’s assets, other than the notes receivable. However, under certain circumstances, LP may be liable for certain liabilities (including liabilities associated with the marketing or remarketing of the senior debt and reimbursement obligations, which are fully cash collateralized under the letter of credit supporting the notes payable) in an amount not to exceed 10% of the aggregate principal amount of the notes receivable.

In December 2009, LP entered into a term loan agreement with a Chilean bank. This loan is denominated in UF (inflation adjusted Chilean pesos) and is partially secured by property, plant and equipment in Chile. The loan will be repaid in 16 equal semi-annual payments beginning in June 2012 and ending December 2019. As of March 31, 2012, no principal payments have been made on this loan. Any increases or decreases in the loan balance shown are related to the change in the underlying foreign currency exchange rates or required inflation adjustments.

In August 2011, LP entered into a export financing loan agreement with a Brazilian bank. This loan will be repaid in 10 equal semi-annual payments beginning in January 2013 and ending July 2017.

LP estimates the senior secured notes maturing in 2017 to have a fair value of $236 million as of March 31, 2012 and $243 million at December 31, 2011 based upon market quotations.

Additional descriptions of LP’s indebtedness are included in consolidated financial statements and the notes thereto included in LP’s Annual Report on Form 10-K for the year ended December 31, 2011.