Note 5 Debt

Debt consisted of the following:


	September 30,		December 31,
	2016		2015
	(In thousands)
2.35% senior notes due September 2016 (1)	$	—	$	347,955
6.15% senior notes due February 2018		828,176		921,162
9.25% senior notes due January 2019		303,489		339,607
5.00% senior notes due September 2020		669,463		683,839
4.625% senior notes due September 2021		694,808		698,628
5.10% senior notes due September 2023		346,416		349,021
Term loan facility		325,000		325,000
Revolving credit facility		300,000		—
Commercial paper		23,000		8,000
Other		120		6,508
		3,490,472		3,679,720
Less: current portion		120		6,508
Less: deferred financing costs		14,374		18,012
	$	3,475,978	$	3,655,200

(1)

The 2.35% senior notes were repaid in September 2016, primarily utilizing borrowings under our revolving credit facility, as well as cash on hand.

During the nine months ended September 30, 2016, we repurchased $160.8 million aggregate principal amount of our senior notes (all of which is now held by a consolidated affiliate) at various maturities for approximately $156.5 million in cash, reflecting principal and approximately $3.0 million of accrued and unpaid interest. The discount represents the gain on the debt buybacks and is included in other expense (income), net in our condensed consolidated statement of income (loss) for the nine months ended September 30, 2016.

Commercial Paper Program

As of September 30, 2016, we had approximately $23.0 million of commercial paper outstanding. The weighted average interest rate on borrowings at September 30, 2016 was 1.14%. Our commercial paper borrowings are classified as long-term debt because the borrowings are fully supported by availability under our revolving credit facility, which matures as currently structured in July 2020, more than one year from now.

Revolving Credit Facility

As of September 30, 2016, we had approximately $300.0 million in borrowings outstanding and the ability to borrow up to an additional $1.9 billion from time-to-time under this facility. The revolving credit facility matures in July 2020. The weighted average interest rate on borrowings at September 30, 2016 was 1.82%. The revolving credit facility contains various covenants and restrictive provisions that limit our ability to incur additional indebtedness, make investments or loans and create liens and require us to maintain a net funded indebtedness to total capitalization ratio, as defined in the agreement. We were in compliance with all covenants under the agreement at September 30, 2016. If we fail to perform our obligations under the covenants, the revolving credit commitment could be terminated, and any outstanding borrowings under the facility could be declared immediately due and payable.

Term Loan Facility

On February 6, 2015, Nabors Delaware entered into an unsecured term loan facility for $300.0 million with a three-year maturity, which was fully and unconditionally guaranteed by us. Under the new term loan facility, we were required to prepay the loan upon the closing of the Merger, or if we otherwise disposed of assets, issued term debt, or issued equity with net proceeds of more than $70.0 million, subject to certain exceptions. The term loan agreement contained customary representations and warranties, covenants and events of default for loan facilities of this type. On March 27, 2015, we repaid the $300.0 million term loan according to the terms of the agreement, using a portion of the cash consideration received in connection with the Merger and the facility was terminated.

On September 29, 2015, Nabors Delaware entered into a new five-year unsecured term loan facility for $325.0 million, which is fully and unconditionally guaranteed by us. The term loan facility contains a mandatory prepayment of $162.5 million due in September 2018. As of September 30, 2016, we had $325.0 million of borrowings outstanding under this facility. The term loan facility matures in September 2020. The weighted average interest rate on borrowings at September 30, 2016 was 1.73%. Borrowings under this facility will bear interest for periods of one, two, three or six months, at an annual rate equal to LIBOR, plus the applicable interest margin. The interest margin is based on our long-term unsecured credit rating for debt as in effect from time to time.