Long-Term Debt and Credit Arrangements (in thousands):



December 31,	2015		2014
Senior notes payable	$	160,000	$	200,000
Credit Agreement loan	100,000		70,000
Mortgages payable	—		6,742
Other notes payable	105		126
Total debt	260,105		276,868
Less current maturities	15,024		1,247
Total long-term debt	$	245,081	$	275,621

The aggregate minimum principal maturities of long-term debt for each of the five years following December 31, 2015, after considering our intent and ability to pay $30.0 million of the 2016 installment of the 2019 Notes (defined below) using another source of financing as disclosed below, are as follows: 2016 - $15.0 million; 2017 - $45.0 million; 2018 - $46.3 million; 2019 - $50.0 million; and 2020 - $103.8 million.

Senior Notes Payable

As of December 31, 2015, senior notes payable in the amount of $160.0 million are due to a group of institutional holders in four remaining equal installments from 2016 through 2019 and bear interest at 6.11% per annum (“2019 Notes”). Of the $40.0 million due for the 2016 installment of the 2019 Notes, $30.0 million is included in long-term debt on the consolidated balance sheets as of December 31, 2015 as we have the ability and intent to pay this installment using borrowings under the Credit Agreement (defined below) or by obtaining other sources of financing. In March 2014, we entered into an interest rate swap designed to convert the interest rate from a fixed rate of 6.11% to a floating rate of 4.15% plus six-month LIBOR (see Note 4 for details).

Our obligations under the note purchase agreement governing the 2019 Notes (the “2019 NPA”) are guaranteed by certain of our subsidiaries and are collateralized on an equivalent basis with the Credit Agreement discussed below by liens on substantially all of the assets of the Company and subsidiaries that are guarantors or borrowers under the amended and restated credit facility. The 2019 NPA provides for the release of liens and re-pledge of collateral on substantially the same terms and conditions as those set forth in the amended and restated credit facility.

Credit Agreement

Granite entered into the Second Amended and Restated Credit Agreement dated October 28, 2015 (the “Credit Agreement”). The Credit Agreement provides for, among other things, (i) an increase in the total committed credit facility amount to $300.0 million from $215.0 million, of which $200.0 million is a revolving credit facility and $100.0 million is a term loan ($70.0 million of which was drawn on October 28, 2015 and $30.0 million of which was drawn on December 12, 2015), and (ii) a revised maturity date of October 28, 2020 (the “Maturity Date”). There was no change in the aggregate sublimit for letters of credit of $100.0 million nor was there any significant change to the affirmative, restrictive or financial covenant terms.

Of the $100.0 million term loan, 1.25% of the principal balance is due in eleven quarterly installments beginning in March 2016, 2.50% of the principal balance is due in eight quarterly installments beginning in December 2018 and the remaining balance is due on the Maturity Date. As of December 31, 2015, $95.0 million of the $100.0 million term loan was included in long-term debt and the remaining $5.0 million was included in current maturities of long-term debt on the consolidated balance sheets.

As of December 31, 2015, the total stated amount of all issued and outstanding letters of credit was $19.1 million. The total unused availability under the Credit Agreement was $181.0 million. The letters of credit will expire between March 2016 and December 2019.

Borrowings under the Credit Agreement bear interest at LIBOR or a base rate (at our option), plus an applicable margin based on certain financial ratios calculated quarterly. LIBOR varies based on the applicable loan term, market conditions and other external factors. The applicable margin was 1.75% for loans bearing interest based on LIBOR and 0.75% for loans bearing interest at the base rate at December 31, 2015. Accordingly, the effective interest rate using three-month LIBOR and base rate was 2.36% and 4.25%, respectively, at December 31, 2015 and we elected to use LIBOR. In January 2016, we entered into an interest rate swap to convert the interest rate on borrowings under the Credit Agreement from a variable rate interest of LIBOR plus an applicable margin to a fixed rate of 1.47% plus the same applicable margin (see Note 4 for details).

Borrowings at the base rate have no designated term and may be repaid without penalty any time prior to the Maturity Date. Borrowings bearing interest at a LIBOR rate have a term no less than one month and no greater than six months (or such longer period not to exceed 12 months if approved by all lenders). At the end of each term, such borrowings can be paid or continued at our discretion as either a borrowing at the base rate or a borrowing at a LIBOR rate with similar terms. Our obligations under the Credit Agreement are guaranteed by certain of our subsidiaries and are collateralized on an equivalent basis with the obligations under the 2019 Notes (defined above) by first priority liens (subject only to other permitted liens) on substantially all of the assets of the Company and our subsidiaries that are guarantors or borrowers under the Credit Agreement.

The Credit Agreement provides for the release of the liens securing the obligations at our option and expense, so long as certain conditions as defined by the terms in the Credit Agreement are satisfied (“Collateral Release Period”). However, if subsequent to exercising the option, our Consolidated Fixed Charge Coverage Ratio is less than 1.25 or our Consolidated Leverage Ratio is greater than 2.50, then we would be required to promptly re-pledge substantially all of the assets of the Company and our subsidiaries that are guarantors or borrowers under the Credit Agreement. As of December 31, 2015, the conditions for the exercise of our right under Credit Agreement to have liens released were not satisfied.

Real Estate Indebtedness

Our unconsolidated real estate held for development and sale is subject to mortgage indebtedness. This indebtedness is non-recourse to Granite, but is recourse to the real estate entity. The terms of this indebtedness are typically renegotiated to reflect the evolving nature of the real estate project as it progresses through acquisition, entitlement and development. Modification of these terms may include changes in loan-to-value ratios requiring the real estate entity to repay portions of the debt. The debt associated with our unconsolidated real estate ventures is disclosed in Note 7.

Covenants and Events of Default

Our debt and credit agreements require us to comply with various affirmative, restrictive and financial covenants, including the financial covenants described below. Our failure to comply with any of these covenants, or to pay principal, interest or other amounts when due thereunder, would constitute an event of default under the applicable agreements. Under certain circumstances, the occurrence of an event of default under one of our debt or credit agreements (or the acceleration of the maturity of the indebtedness under one of our agreements) may constitute an event of default under one or more of our other debt or credit agreements. Default under our debt and credit agreements could result in (i) us no longer being entitled to borrow under the agreements; (ii) termination of the agreements; (iii) the requirement that any letters of credit under the agreements be cash collateralized; (iv) acceleration of the maturity of outstanding indebtedness under the agreements and/or (v) foreclosure on any collateral securing the obligations under the agreements.

The most significant financial covenants under the terms of our amended and restated credit facility and 2019 NPA require the maintenance of a minimum Consolidated Tangible Net Worth, a minimum Consolidated Interest Coverage Ratio and a maximum Consolidated Leverage Ratio.

As of December 31, 2015 and pursuant to the definitions in the agreements, our Consolidated Tangible Net Worth was $822.8 million, which exceeded the minimum of $659.6 million, our Consolidated Leverage Ratio was 1.83 which did not exceed the maximum of 3.00 and our Consolidated Interest Coverage Ratio was 10.05 which exceeded the minimum of 4.00.

As of December 31, 2015, we were in compliance with all covenants contained in the Credit Agreement and 2019 NPA, as amended, and the debt agreements related to our consolidated real estate entity. We are not aware of any non-compliance by any of our unconsolidated real estate entities with the covenants contained in their debt agreements.