Debt Obligations

Debt obligations consist of the following as of December 31, 2016 and 2015:



	As of December 31,
(in thousands)	2016			2015
Credit Facility:
Term loan, due 2019	$	60,000		$	67,031
Revolving credit agreements, due 2019	159,963			7,701
	219,963			74,732
Convertible Debt:
1.50% convertible notes, unsecured, due 2044	358,293			347,878

Other obligations	23,892			5,731

Total debt obligations	$	602,148		$	428,341
Unamortized debt issuance costs	(8,324		)	(10,809		)
Carrying value of debt	$	593,824		$	417,532
Short-term debt obligations and current maturities of long-term debt obligations	(32,161		)	(12,060		)
Long-term debt obligations	$	561,663		$	405,472

As of December 31, 2016, aggregate annual maturities of long-term debt are $9.0 million in 2017, $14.2 million in 2018, $197.5 million in 2019, $402.5 million in 2020 and none thereafter. This maturity schedule reflects the term loan and revolving credit facilities maturing in 2019 and the convertible notes maturing in 2020, coinciding with the terms of the initial put option by holders of the notes.

Credit Facility

The Company has a revolving bank credit facility with a syndicate of financial institutions which expires April 9, 2019. The senior secured credit facility (the "Credit Facility") provides an aggregate amount of $675 million, consisting of a $590 million five-year revolving credit facility, a $10 million five-year India revolving credit facility and a $75 million five-year term loan which has been reduced to $60.0 million as of December 31, 2016 through principal amortization payments. The revolving credit facility allows for borrowings in U.S. dollars, euro, British pound sterling, Australian dollars and/or Indian rupees. The revolving credit facility contains a $200 million sublimit for the issuance of letters of credit and a $25 million sublimit for swingline loans.

Fees and interest on borrowings vary based upon the Company's consolidated total leverage ratio (as defined in the amended and restated credit agreement) and will be based, in the case of letter of credit fees, on a margin, and in the case of interest, on a margin over London Inter-Bank Offered Rate (“LIBOR”) or a margin over the base rate, as selected by the Company, with the applicable margin ranging from 1.375% to 2.375% (or 0.375% to 1.375% for base rate loans). The base rate is the highest of (i) the Bank of America prime rate, (ii) the Federal Funds rate plus 0.50% or (iii) the Fixed LIBOR rate plus 1.00%. The term loan is subject to scheduled quarterly amortization payments, as set forth in the amended and restated credit agreement. The maturity date for the Credit Facility is April 9, 2019, at which time the outstanding principal balance and all accrued interest will be due and payable in full. The weighted average interest rates of the Company's borrowings under the term loan and revolving credit facility were 2.1% and 2.4%, respectively, as of December 31, 2016, and 1.8% and 10.1%, respectively as of December 31, 2015. The weighted average interest rate under the revolving credit facility for 2015 was higher than the Term Loan A due to the higher borrowing rate related to the India credit facility.

As of December 31, 2016 and 2015, the Company had stand-by letters of credit/bank guarantees outstanding against the revolving credit facility of $44.9 million and $42.0 million, respectively. Stand-by letters of credit/bank guarantees reduce the Company's borrowing capacity under the revolving credit facility and are generally used to secure trade credit and performance obligations. The Company pays an interest rate for stand-by letters of credit/bank guarantees at a rate that may adjust each quarter based upon the Company's consolidated total leverage ratio. As of December 31, 2016 and 2015, the stand-by letters of credit interest charges was 1.4% per annum.

The amended and restated credit agreement contains customary affirmative and negative covenants, events of default and financial covenants, including: (i) a Consolidated Total Leverage Ratio not to exceed 4.0 to 1.0; and (ii) a Consolidated Fixed Charge Coverage Ratio of not less than 1.5 to 1.0. Subject to meeting certain leverage ratio and liquidity requirements as contained in the amended and restated credit agreement, the Company is permitted to pay dividends, repurchase common stock and repurchase subordinated debt.

The Company and certain subsidiaries have guaranteed the repayment of obligations under the Credit Facility and have granted pledges of the shares of certain subsidiaries along with a security interest in certain other personal property collateral of the Company and certain subsidiaries.

Convertible Debt

On October 30, 2014, the Company completed the sale of $402.5 million of Convertible Senior Notes due 2044 (“Convertible Notes”). The Convertible Notes have an interest rate of 1.5% per annum payable semi-annually in April and October, and are convertible into shares of Euronet Common Stock at a conversion price of approximately $72.18 per share if certain conditions are met (relating to the closing prices of Euronet Common Stock exceeding certain thresholds for specified periods). Holders of the Convertible Notes have the option to require the Company to purchase their notes at par on October 1, 2020, and have additional options to require the Company to purchase their notes at par on October 1, 2024, 2029, 2034, and 2039, or upon a change in control of the Company. In connection with the issuance of the Convertible Notes, the Company recorded $10.7 million in debt issuance costs, which are being amortized through October 1, 2020.

In accordance with ASC 470-20-30-27, proceeds from the issuance of convertible debt is allocated between debt and equity components so that debt is discounted to reflect the Company's nonconvertible debt borrowing rate. ASC 470-20-35-13 requires the debt discount to be amortized over the period the convertible debt is expected to be outstanding as additional non-cash interest expense. The allocation resulted in an increase to additional paid in capital of $66.1 million.

Contractual interest expense was $6.0 million, $6.0 million and $0.9 million for the years ended December 31, 2016, 2015 and 2014, respectively. Discount accretion was $10.4 million, $9.9 million and $1.6 million for the years ended December 31, 2016, 2015 and 2014, respectively. As of December 31, 2016 and 2015, the unamortized discounts were $44.2 million and $54.6 million, respectively. The discount will be amortized through October 1, 2020. The effective interest rate was 4.7% for the years ended December 31, 2016 and 2015.

Other obligations

Certain of the Company's subsidiaries have available lines of credit and overdraft credit facilities that generally provide for short-term borrowings that are used from time to time for working capital purposes. As of December 31, 2016 and 2015, borrowings under these arrangements were $23.9 million and $5.7 million, respectively. As of December 31, 2016, there was $23.3 million due in 2017 under these other obligation arrangements.