Debt and Debt Issuance Costs

3 Months Ended

Mar. 31, 2024

Debt Disclosure [Abstract]

Debt and Debt Issuance Costs

Debt and Debt Issuance Costs

The Company’s debt as at March 31, 2024, and December 31, 2023, was as follows:

(Thousands of U.S. Dollars)	As at March 31, 2024		As at December 31, 2023
Current
Credit facility	$	—	$	36,364
6.25% Senior Notes, due February 2025 (“6.25% Senior Notes”)	24,828		—
Unamortized debt issuance costs	(151)		(755)
	$	24,677	$	35,609
Long-Term
6.25% Senior Notes, due February 2025 (“6.25% Senior Notes”)	$	—	$	24,828
7.75% Senior Notes, due May 2027 (“7.75% Senior Notes”)	24,201		24,201
9.50% Senior Notes, due October 2029 (“9.50% Senior Notes”)	587,590		487,590
Unamortized Senior Notes discount	(38,164)		(27,958)
Unamortized Senior Notes issuance costs	(17,465)		(15,679)
	556,162		492,982
Long-term lease obligation (1)	26,937		26,550
	$	583,099	$	519,532
Total Debt	$	607,776	$	555,141

(1) The current portion of the lease obligation has been included in accounts payable and accrued liabilities on the Company’s balance sheet and totaled $15.2 million as at March 31, 2024 (December 31, 2023 - $12.1 million).

Credit Facility

As at December 31, 2023, the Company had a $36.4 million balance outstanding under the Company’s credit facility. On February 6, 2024, the outstanding balance under the credit facility of $36.4 million was fully re-paid and the credit facility was terminated.

Senior Notes

On February 6, 2024, the Company issued an additional $100.0 million of 9.50% Senior Notes due October 2029 (the “new 9.50% Senior Notes”), and received cash proceeds of $88.0 million. The new 9.50% Senior Notes have the same terms and provisions as the previously issued $487.6 million 9.50% Senior Notes except for the issue price. The new 9.50% Senior Notes accrue interest from October 20, 2023, the date of issuance of previously issued 9.50% Senior Notes. The Company received a cash payment of $2.8 million related to the accrued interest of the new 9.50% Senior Notes.

Leases

During the three months ended March 31, 2024, the Company recorded three new finance leases totaling $6.1 million, which have lease terms ranging from two to three years and weighted average discount rates of 9.6%.

Interest Expense

The following table presents the total interest expense recognized in the accompanying interim unaudited condensed consolidated statements of operations:

	Three Months Ended March 31,
(Thousands of U.S. Dollars)	2024		2023
Contractual interest and other financing expenses	$	15,118	$	11,055
Amortization of debt issuance costs	3,306		781
	$	18,424	$	11,836