6. DEBT

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


	March 31,		December 31,
	2019		2018
Bank credit facility	$	1,019,250	$	1,024,375
5¹⁄₂% senior notes due 2021		200,000		200,000

Total debt	$	1,219,250	$	1,224,375
Less: current portion		170,500		20,500

Total long-term debt, gross (less current portion)	$	1,048,750	$	1,203,875
Less: deferred financing costs, net		12,499		13,318

Total long-term debt, net (less current portion)	$	1,036,251	$	1,190,557

2019 Financing Activity

On March 15, 2019, we called for the irrevocable redemption of $150.0 million principal amount outstanding of our 5½% senior notes due March 2021 (the “5½% Notes”).

On April 15, 2019, we completed the redemption of $150.0 million principal amount outstanding of the 5¹⁄₂% Notes. Upon completion of the partial redemption, $50.0 million principal amount of the 5¹⁄₂% Notes remained outstanding. See Note 14.

Bank Credit Facility

As of March 31, 2019, we maintained a $1.394 billion credit facility (the “credit facility”), comprising:

•

$375.0 million of revolving credit commitments, which expire on November 2, 2022;

•

$231.3 million of outstanding borrowings under Term Loan A-1, which mature on November 2, 2022;

•

$788.0 million of outstanding borrowings under Term Loan M, which mature on January 15, 2025;

As of March 31, 2019, we had approximately $365.6 million of unused revolving credit commitments, all of which were available to be borrowed and used for general corporate purposes, after giving effect to no outstanding loans and $9.4 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. As of March 31, 2019, 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 March 31, 2019, our operating subsidiaries were in compliance with all covenants under the credit agreement. As of the same date, the credit agreement allowed for the full or partial repayment of any outstanding debt under the credit facility at par value any time prior to maturity.

Interest Rate Swaps

We periodically enter into 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 months ended, March 31, 2018. As of March 31, 2019, we had no current or forward-starting interest rate swaps.

Senior Notes

As of March 31, 2019, we had $200 million of outstanding senior notes, all of which comprised our 5¹⁄₂% Notes. On April 15, 2019, we completed the redemption of $150.0 million principal amount outstanding of the 5¹⁄₂% Notes. See Note 14.

Our senior notes are unsecured obligations, and the indenture governing the 5½% Notes (the “indenture”) limits the incurrence of additional indebtedness based upon a maximum debt to operating cash flow ratio (as defined in the indenture) of 8.5 to 1.0. For all periods through March 31, 2019, we were in compliance with all covenants under the indenture. As of the same date, the indenture allowed for the full or partial repayment of any of our senior notes at par value at any time prior to maturity.

Debt Ratings

MCC’s corporate credit ratings are currently Ba1 by Moody’s and BB+ by Standard and Poor’s (“S&P”), both with stable outlooks, and our senior unsecured ratings are currently Ba2 by Moody’s and BB- by S&P, both with stable outlooks. There are no covenants, events of default, borrowing conditions or other terms in the credit agreement or indenture 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):


	March 31,		December 31,
	2019		2018
5¹⁄₂% senior notes due 2021	$	200,750	$	200,500

Total senior notes	$	200,750	$	200,500

Bank credit facility	$	1,013,340	$	992,775