6. DEBT

Outstanding debt consisted of the following (dollars in thousands):


	September 30, 2016		December 31, 2015
Bank credit facility	$	1,155,000	$	1,329,750
5¹⁄₂% senior notes due 2021		200,000		200,000
6³⁄₈% senior notes due 2023		300,000		300,000

Total debt	$	1,655,000	$	1,829,750
Less: current portion		16,575		19,075

Total long-term debt, gross (less current portion)	$	1,638,425	$	1,810,675
Less: deferred financing costs, net		15,437		20,232

Total long-term debt, net (less current portion)	$	1,622,988	$	1,790,443

2016 Financing Activity

On May 19, 2016, we repaid the entire $245.6 million balance of Term Loan I under our bank credit facility, that was funded by borrowings of $170.6 million under our revolving credit commitments and $75.0 million of capital contributions by our parent, MCC. On the same date, MCC received the $75.0 million of capital contributions from Mediacom LLC. We recorded a loss on early extinguishment of debt of $1.2 million for the nine months ended September 30, 2016, which represented the write-off of certain unamortized financing costs as a result of the repayment of Term Loan I.

Bank Credit Facility

As of September 30, 2016, we maintained a $1.388 billion bank credit facility (the “credit facility”), comprising:

•

$368.5 million of revolving credit commitments, which expire on October 10, 2019;

•

$145.8 million of outstanding borrowings under Term Loan A, which mature on January 15, 2021;

•

$580.5 million of outstanding borrowings under Term Loan H, which mature on January 29, 2021;

•

$293.3 million of outstanding borrowings under Term Loan J, which mature on June 30, 2021.

As of September 30, 2016, we had $223.4 million of unused revolving credit commitments, all of which were available to be borrowed and used for general corporate purposes, after giving effect to approximately $135.4 million of outstanding loans and $9.7 million of letters of credit issued thereunder to various parties as collateral.

The credit facility is collateralized by our ownership interests in our operating subsidiaries and is guaranteed by us on a limited recourse basis to the extent of such ownership interests. All outstanding debt under the credit facility may be prepaid, at our option, at par any time prior to maturity. As of September 30, 2016, the credit agreement governing the credit facility (the “credit agreement”) required our operating subsidiaries to maintain a total leverage ratio (as defined in the credit agreement) of no more than 5.0 to 1.0 and an interest coverage ratio (as defined in the credit agreement) of no less than 2.0 to 1.0. For all periods through September 30, 2016, our operating subsidiaries were in compliance with all covenants under the credit agreement.

Interest Rate Swaps

We have entered into several interest rate exchange agreements (which we refer to as “interest rate swaps”) with various banks to fix the variable rate on a portion of our borrowings under the credit facility to reduce the potential volatility in our interest expense that may result from changes in market interest rates. Our interest rate swaps have not been designated as hedges for accounting purposes, and have been accounted for on a mark-to-market basis as of, and for the three and nine months ended, September 30, 2016 and 2015, respectively. As of September 30, 2016, we had interest rate swaps that fixed the variable portion of $600 million of borrowings at a rate of 1.5%, all of which are scheduled to expire during December 2018.

As of September 30, 2016, the weighted average interest rate on outstanding borrowings under the credit facility, including the effect of our interest rate swaps, was 3.6%.

Senior Notes

As of September 30, 2016, we had $500 million of outstanding senior notes, comprising $200 million of 5¹⁄₂% senior notes due April 2021 and $300 million of 6³⁄₈% senior notes due April 2023. The indentures governing our senior notes (the “indentures”) provide for early redemption of the senior notes, at our option, at the prices and subject to the terms specified in the indentures. Our senior notes are unsecured obligations, and the indentures limit the incurrence of additional indebtedness based upon a maximum debt to operating cash flow ratio (as defined in the indentures) of 8.5 to 1.0. For all periods through September 30, 2016, we were in compliance with all covenants under the indentures.

Deferred Financing Costs

We adopted ASU 2015-03 and ASU 2015-15 as of January 1, 2016 and implemented retrospectively as of December 31, 2015. We reclassified $15.4 million of deferred financing costs from other assets, net to long-term debt, net (less current portion) as of September 30, 2016 in accordance with such guidance. We reclassified $20.2 million of deferred financing costs from other assets, net to long-term debt, net (less current portion) as of December 31, 2015 in accordance with such guidance. See Note 2.

Debt Ratings

MCC’s corporate credit ratings are Ba3 by Moody’s and BB by Standard and Poor’s (“S&P”), and our senior unsecured ratings are B2 by Moody’s and B+ by S&P, all with a stable outlook. There are no covenants, events of default, borrowing conditions or other terms in the credit agreement or indentures that are based on changes in our credit rating assigned by any rating agency.

Fair Value

The fair values of our senior notes and outstanding debt under the credit facility (which were calculated based upon unobservable inputs that are corroborated by market data that we determine to be Level 2), were as follows (dollars in thousands):


	September 30, 2016		December 31, 2015
5¹⁄₂% senior notes due 2021	$	208,000	$	191,500
6³⁄₈% senior notes due 2023		318,000		291,750

Total senior notes	$	526,000	$	483,250

Bank credit facility	$	1,160,820	$	1,317,990