Debt

The following table summarizes the components of debt as of March 31, 2013 and December 31, 2012:



	March 31, 2013			December 31, 2012
				(as reported)
	(in millions)
Manufacturing/Corporate – Recourse:
Revolving credit facility	$	—		$	—
Convertible subordinated notes	450.0			450.0
Less: unamortized discount	(84.2		)	(87.5		)
	365.8			362.5
Other	1.1			1.2
	366.9			363.7
Leasing – Recourse:
Capital lease obligations	45.1			45.8
Term loan	—			48.6
	45.1			94.4
Total recourse debt	412.0			458.1

Leasing – Non-recourse:
2006 secured railcar equipment notes	252.2			255.8
Promissory notes	418.2			424.1
2009 secured railcar equipment notes	206.7			209.2
2010 secured railcar equipment notes	337.9			341.5
2012 secured railcar equipment notes	331.1			333.8
TILC warehouse facility	167.9			173.6
TRIP Holdings senior secured notes:
Total outstanding	170.0			170.0
Less: owned by Trinity	(108.8		)	(108.8		)
	61.2			61.2
TRIP Master Funding secured railcar equipment notes	787.6			797.7
Total non–recourse debt	2,562.8			2,596.9
Total debt	$	2,974.8		$	3,055.0

We have a $425.0 million unsecured revolving credit facility that matures on October 20, 2016. As of March 31, 2013, we had letters of credit issued under our revolving credit facility in an aggregate principal amount of $70.1 million, leaving $354.9 million available for borrowing. Other than these letters of credit, there were no borrowings under our revolving credit facility as of March 31, 2013, or for the three month period then ended. Of the outstanding letters of credit as of March 31, 2013, a total of $1.7 million is expected to expire in 2013 and the remainder in 2014. The majority of our letters of credit obligations support the Company’s various insurance programs and generally renew each year. Trinity’s revolving credit facility requires the maintenance of ratios related to minimum interest coverage for the leasing and manufacturing operations and maximum leverage. Borrowings under the credit facility bear interest at Libor plus 1.50% or prime plus 0.50%. As of March 31, 2013, we were in compliance with all such financial covenants.

The Company's 3 7/8% convertible subordinated notes are recorded net of unamortized discount to reflect their underlying economics by capturing the value of the conversion option as borrowing costs. As of March 31, 2013 and December 31, 2012, capital in excess of par value included $92.8 million related to the estimated value of the Convertible Subordinated Notes’ conversion options, in accordance with ASC 470-20. Debt discount recorded in the consolidated balance sheet is being amortized through June 1, 2018 to yield an effective annual interest rate of 8.42% based upon the estimated market interest rate for comparable non-convertible debt as of the issuance date of the Convertible Subordinated Notes. Total interest expense recognized on the Convertible Subordinated Notes for the three months ended March 31, 2013 and 2012 is as follows:



	Three Months Ended March 31,
	2013		2012
	(in millions)
Coupon rate interest	$	4.4	$	4.4
Amortized debt discount	3.3		3.0
	$	7.7	$	7.4

At March 31, 2013, the Convertible Subordinated Notes were convertible at a price of $51.04 per share resulting in 8,816,614 issuable shares. As of March 31, 2013, if the Convertible Subordinated Notes had been converted, no shares would have been issued since the trading price of the Company’s common stock was below the conversion price of the Convertible Subordinated Notes. The Company has not entered into any derivatives transactions associated with these notes.

The $475.0 million TILC warehouse loan facility, established to finance railcars owned by TILC, had $167.9 million outstanding and $307.1 million available as of March 31, 2013. The warehouse loan is a non-recourse obligation secured by a portfolio of railcars and operating leases, certain cash reserves, and other assets acquired and owned by the warehouse loan facility. The principal and interest of this indebtedness are paid from the cash flows of the underlying leases. Advances under the facility bear interest at a defined index rate plus a margin, for an all-in interest rate of 2.22% at March 31, 2013. In February 2013, the warehouse loan facility was extended for an additional six months and now matures in August 2013. Amounts outstanding at maturity, absent renewal, will be payable in three installments in February 2014, August 2014, and February 2015.

The Company's term loan agreement was repaid in full in March 2013.

Terms and conditions of other debt, including recourse and non-recourse provisions, are described in Note 11 of the December 31, 2012 Consolidated Financial Statements filed on Form 10-K.

The remaining principal payments under existing debt agreements as of March 31, 2013, after considering the extension of the TILC warehouse facility in February 2013, are as follows:



	Remaining nine months of 2013		2014			2015		2016		2017		Thereafter
	(in millions)
Recourse:
Manufacturing/Corporate	$	0.2	$	0.2		$	0.2	$	0.2	$	0.3	$	450.0
Leasing – capital lease obligations (Note 5)	2.2		3.1			3.3		3.5		3.7		29.3
Non-recourse – leasing (Note 5):
2006 secured railcar equipment notes	11.5		16.9			18.6		21.9		24.1		159.2
Promissory notes	21.6		25.4			22.7		348.5		—		—
2009 secured railcar equipment notes	7.7		9.9			9.6		6.5		6.3		166.7
2010 secured railcar equipment notes	11.0		14.0			15.3		15.0		13.7		268.9
2012 secured railcar equipment notes	12.5		16.6			15.7		15.9		13.8		256.6
TILC warehouse facility	2.4		4.6			0.5		—		—		—
TRIP Holdings senior secured notes:
Total outstanding	—		170.0			—		—		—		—
Less: owned by Trinity	—		(108.8		)	—		—		—		—
			61.2
TRIP Master Funding secured railcar equipment notes	30.8		40.1			35.7		29.3		20.4		631.3
Facility termination payments - TILC warehouse facility	—		106.9			53.5		—		—		—
Total principal payments	$	99.9	$	298.9		$	175.1	$	440.8	$	82.3	$	1,962.0