Debt and Credit Facilities

3 Months Ended

Mar. 31, 2017

Debt consisted of the following:



	March 31, 2017 (a)		December 31, 2016
7.875% senior secured notes due April 15, 2019	$	233,352	$	233,154

(a) Presented in the condensed consolidated balance sheet as current portion of long-term debt of $66.3 million, net of deferred financing costs of $0.4 million; and long-term debt of $167.0 million, net of deferred financing costs of $1.2 million.

Debt Refinancing

As discussed in Note 18, on April 12, 2017, the Company extinguished the 7.875% notes and entered into a $175 million term loan facility maturing in April 2023. The Company also increased the size of its revolving credit facility from $40 million to $65 million and extended the term through April 2022. See Note 18 for further details.

In the first quarter of 2017, the Company deferred financing fees associated with the debt refinancing of $0.5 million, which are reported in other current assets as of March 31, 2017. Additionally, the Company classified $66.3 million of the 7.875% notes as current debt, net of associated deferred financing costs of $0.4 million. The remaining $167.0 million is classified as long-term debt. The current portion of long-term debt of $66.3 million represents the cash outlay to be made within the next twelve months as a result of the refinancing along with definitions discussed in Note 18.

7.875% Senior Secured Notes due 2019

Accrued interest was $8.5 million and $8.7 million as of March 31, 2017 and 2016, respectively. The unamortized deferred financing fees of $1.6 million and $1.8 million are netted against the aggregate book value of the outstanding debt to arrive at a balance of $233.4 million and $233.2 million as of March 31, 2017 and December 31, 2016, respectively, and are being amortized over the remaining life of the agreement.

We were in compliance with the covenants and were not in default of our 7.875% notes as of March 31, 2017.

Revolving Credit Facility

The unamortized deferred financing fees associated with our revolving credit facility of $0.1 million as of March 31, 2017 and December 31, 2016 were being amortized over the remaining life of the agreement. As of March 31, 2017 and December 31, 2016, we did not have borrowings under the revolving credit facility. We had outstanding letters of credit of approximately $2.3 million and borrowing availability of $37.7 million under the revolving credit facility and an applicable margin set at Level III.

Because the Company had borrowing availability in excess of $7.5 million from December 31, 2016 through March 31, 2017, the Company was not required to comply with the minimum fixed charge coverage ratio covenant during the quarter ended March 31, 2017.

As of March 31, 2017, we were in compliance with these covenants and were not in default under the Second ARLS Agreement.