|3 Months Ended|
Mar. 31, 2017
|Debt Disclosure [Abstract]|
Debt consisted of the following:
(a) Letter of Credit Facility and Alon USA, LP Revolving Credit Facility
We had letters of credit outstanding under our $60,000 letter of credit facility of $56,227 and $57,727 at March 31, 2017 and December 31, 2016, respectively.
At March 31, 2017 and December 31, 2016, there were no outstanding borrowings under the Alon USA, LP $240,000 revolving credit facility. At March 31, 2017 and December 31, 2016, we had letters of credit outstanding of $68,159 and $100,613, respectively.
(b) Convertible Senior Notes
The conversion rate for our 3.00% unsecured convertible senior notes (“Convertible Notes”) is subject to adjustment upon the occurrence of certain events, including cash dividend adjustments, but will not be adjusted for any accrued and unpaid interest. As of March 31, 2017, the adjusted conversion rate was 73.702 shares of our common stock per each $1 (in thousands) principal amount of Convertible Notes, equivalent to a per share conversion price of approximately $13.57, to reflect cash dividend adjustments. The options had an adjusted strike price of $13.57 per share and the warrants had an adjusted strike price of $18.43 per share. Upon a potential change of control, we may have to settle the value of the warrants. Any future quarterly cash dividend payments in excess of $0.06 per share will cause further adjustment based on the formula contained in the indenture governing the Convertible Notes. As of March 31, 2017, there have been no conversions of the Convertible Notes.
(c) Financial Covenants
We have certain credit agreements that contain maintenance financial covenants. At March 31, 2017, we were in compliance with these covenants.
The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.
Reference 1: http://www.xbrl.org/2003/role/presentationRef