Not all of our Subsidiaries will guarantee the Notes. In the event of a bankruptcy, liquidation or reorganization of any of these non-guarantor Subsidiaries, the non-guarantor Subsidiaries will pay the holders of their debt and their trade creditors before they will be able to distribute any of their assets to us. For the six months ended June 30, 2017, our non-guarantor subsidiaries represented approximately 47% of our sales of metals and 81% of our operating income. For the year ended December 31, 2017, our non-guarantor subsidiaries represented approximately 36% of our sales of metals and 32% of our operating income. As of June 30, 2017, our non-guarantor subsidiaries represented approximately 46% of our total assets and approximately 32% of our total liabilities (including trade payables, deferred tax liabilities and royalty obligations but excluding intercompany liabilities).
Upon the closing of this exchange offer, all of our Subsidiaries will be Restricted Subsidiaries. However, under the circumstances described below under the caption —Certain Covenants—Designation of Restricted and Unrestricted Subsidiaries, we will be permitted to designate certain of our Subsidiaries as Unrestricted Subsidiaries. Our Unrestricted Subsidiaries will not be subject to many of the restrictive covenants in the Indenture. Our Unrestricted Subsidiaries will not guarantee the Notes.
Principal, Maturity and Interest
Coeur may issue additional Notes under the Indenture from time to time after this offering. Any issuance of additional Notes is subject to all of the covenants in the Indenture, including the covenant described below under the caption —Certain Covenants—Incurrence of Indebtedness and Issuance of Preferred Stock. The Outstanding Notes, the New Notes and any additional Notes subsequently issued under the Indenture will be treated as a single class for all purposes under the Indenture, including, without limitation, waivers, amendments, redemptions and offers to purchase. Coeur will issue New Notes in denominations of $2,000 and integral multiples of $1,000 in excess of $2,000. The Notes will mature on June 1, 2024.
Interest on the New Notes will accrue at the rate of 5.875% per annum and will be payable semi-annually in arrears on June 1 and December 1, commencing on December 1, 2017. Interest on overdue principal, interest and Special Interest, if any, will accrue at a rate that is 1% higher than the then applicable interest rate on the Notes. Coeur will make each interest payment to the holders of record on the immediately preceding May 15 and November 15.
Interest on the New Notes will accrue from the date of original issuance or, if interest has already been paid, from the date it was most recently paid on the Notes. Interest will be computed on the basis of a 360-day year comprised of twelve 30-day months.
Methods of Receiving Payments on the Notes
If a holder of Notes has given wire transfer instructions to Coeur, Coeur will pay all principal of, premium on, if any, and interest and Special Interest, if any, on that holders Notes in accordance with those instructions. All other payments on the Notes will be made at the office or agency of the paying agent and registrar within the City and State of New York unless Coeur elects to make interest payments by check mailed to the noteholders at their address set forth in the register of holders.
Paying Agent and Registrar for the Notes
The trustee will initially act as paying agent and registrar. Coeur may change the paying agent or registrar without prior notice to the holders of the Notes, and Coeur or any of its Subsidiaries may act as paying agent or registrar.
Transfer and Exchange
A holder may transfer or exchange Notes in accordance with the provisions of the Indenture. The registrar and the trustee may require a holder, among other things, to furnish appropriate endorsements and transfer documents in connection with a transfer of Notes. Holders will be required to pay all taxes due on transfer. Coeur will not be required to transfer or exchange any Note selected for redemption. Also, Coeur will not be required to transfer or exchange any Note for a period of 15 days before a selection of Notes to be redeemed.
Note Guarantees
The Outstanding Notes are Guaranteed by, and the New Notes will be Guaranteed initially by the Initial Guarantors. In addition, the Notes, including the New Notes, will be Guaranteed by each of Coeurs Restricted