Note 6 — Long-term Debt

Long-term debt consisted of the following (in thousands):


	March 31, 2012			December 31, 2011
First lien term loans, net of unamortized discount of $8,878 and $2,460, respectively,	$	353,286		$	204,703
Senior second lien notes, net of unamortized discount of $4,321 and $4,671, respectively,		1,495,679			1,495,329
Term loan facility – ATP Titan assets, net of unamortized discount of $15,322 and $16,373, respectively,		303,148			309,973

Total debt		2,152,113			2,010,005
Less current maturities		(36,630	)		(33,848	)

Total long-term debt	$	2,115,483		$	1,976,157

Senior Second Lien Notes

In April 2010, we issued senior second lien notes (the "Notes") in an aggregate principal amount of $1.5 billion, due May 1, 2015. The Notes bear interest at an annual rate of 11.875%, payable each May 1 and November 1, and contain restrictions that, among other things, limit the incurrence of additional indebtedness, mergers and consolidations, and certain restricted payments.

At any time (which may be more than once), on or prior to May 1, 2013, the Company may, at its option, redeem up to 35% of the outstanding Notes with money raised in certain equity offerings, at a redemption price of 111.9%, plus accrued interest, if any. In addition, the Company may redeem the Notes, in whole or in part, at any time before May 1, 2013 at a redemption price equal to par plus an applicable make-whole premium plus accrued and unpaid interest to the date of redemption. The Company may also redeem any of the Notes at any time on or after May 1, 2013, in whole or in part, at specified redemption prices, plus accrued and unpaid interest to the date of redemption.

The Notes also contain a provision allowing the holders thereof to require the Company to purchase some or all of those Notes at a purchase price equal to 101% of their aggregate principal amount, plus accrued and unpaid interest to the date of repurchase, upon the occurrence of specified change of control events.

First Lien Term Loans

In June 2010, we entered into our Credit Facility with an initial balance of $150.0 million and bearing interest at an annual rate of 11.0% to replace the previous credit facility. Initial proceeds of the Credit Facility were $144.3 million, net of original issue discount and transaction fees. In February 2011, we entered into Incremental Loan Assumption Agreement and Amendment No. 1, relating to our Credit Facility, dated as of June 18, 2010 to, among other things, decrease the interest rate on the entire balance outstanding to 9%. Additional borrowings were $60.0 million ($58.0 million, net of transaction costs and discount). On March 9, 2012, we entered into the Amendment which provided for an increase to the initial principal amount of the Credit Facility to $365.0 million. The Amendment also reduced the interest rate of the Credit Facility to a floating rate of 8.75% calculated based on LIBOR (floor of 1.5%) plus 7.25%. The other terms of the Credit Facility were essentially unchanged by the Amendment. Quarterly principal payments are required equal to 0.5% of remaining principal balance until June 18, 2014 and the remaining principal balance is due January 15, 2015. The Company granted the lenders a security interest in and a first lien on not less than 80% of its proved oil and gas reserves in the Gulf of Mexico, capital stock of material subsidiaries (limited in the case of the Company's non-U.S. subsidiaries to not more than 65% of the capital stock) and certain infrastructure assets, a portion of which has since been released in connection with the Titan LLC financing discussed below.

The Notes and Credit Facility contain certain negative covenants which place limits on the Company's ability to, among other things:

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incur additional indebtedness;

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pay dividends on the Company's capital stock or purchase, repurchase, redeem, defease or retire the Company's capital stock or subordinated indebtedness;

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make investments outside of our normal course of business;

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incur liens;

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create any consensual restriction on the ability of the Company's restricted subsidiaries to pay dividends, make loans or transfer property to the Company;

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engage in transactions with affiliates;

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sell assets; and

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consolidate, merge or transfer assets.

Term Loan Facility - ATP Titan Assets

In September 2010, we formed Titan LLC, a wholly owned and operated subsidiary which we consolidate in our financial statements, and transferred to it our 100% ownership of the ATP Titan platform and related infrastructure assets. Simultaneous with the transfer, Titan LLC entered into a $350.0 million term loan facility (the "ATP Titan Facility"). Under the initial agreement and the First and Second Amendments to Term Loan Agreement and Limited Waivers entered into in March and September 2011, respectively, we have now drawn down the entire amount available receiving proceeds of $317.9 million, net of discount and direct issuance costs. The ATP Titan Facility bears interest at LIBOR (floor of 0.75%) plus 8%. Principal payments are required equal to 2.25% (of original principal) per quarter until October 4, 2012, and 2.5% thereafter until final maturity at September 2017. The ATP Titan Facility requires us to maintain in a restricted account a minimum $10.0 million cash balance plus additional amounts based on production at the Telemark Hub to be used for the quarterly debt service of the ATP Titan Facility. The ATP Titan Facility is collateralized solely by the ATP Titan and related infrastructure assets (net book value at December 31, 2011 of $1,105.9 million) and the outstanding member interests in Titan LLC, which are all owned indirectly by the Company. The Company remains operator and 100% owner of the ATP Titan platform, related infrastructure assets and the working interest in its Telemark Hub oil and gas reserves.

The Credit Facility and the Notes contain customary events of default, and if certain of those events of default were to occur and remain uncured, such as a failure to pay principal or interest when due, our lenders could terminate future lending commitments under the Credit Facility, and our lenders could declare the outstanding borrowings due and payable. The Credit Facility also contains an event of default if there has occurred a material adverse change with respect to the Company's compliance with environmental requirements and applicable laws and regulations. The ATP Titan Facility contains standard events of default and an event of default if there has occurred a material adverse change with respect to the Company. The ATP Titan Facility also contains provisions that provide for cross defaults among the documents entered into in connection with the ATP Titan Facility and acceleration of Titan LLC's payment obligations under the ATP Titan Facility in certain situations. In addition, our hedging arrangements contain standard events of default, including cross default provisions, that, upon a default, provide for (i) the delivery of additional collateral, (ii) the termination and acceleration of the hedge, (iii) the suspension of the lenders' obligations under the hedging arrangement or (iv) the setoff of payment obligations owed between the parties.

The effective annual interest rate and fair value of our long-term debt was 11.8% and $1.8 billion, respectively, at March 31, 2012. Accrued interest payable was $82.2 million and $37.7 million at March 31, 2012 and December 31, 2011, respectively.