	2018			2017
Long-term obligations under capital lease	$	647,664		$	648,840
Deferred financing fees		(7,908	)		(9,912	)
Long-term obligations under capital lease		639,756			638,928
Current portion of long-term obligations under capital lease		(48,384	)		(43,912	)
Long-term obligations under capital lease	$	591,372		$	595,016

The Company, through certain of its wholly-owned subsidiaries, has entered into non-recourse or limited recourse sale-leaseback arrangements with financial institutions to fund the construction of certain vessels under existing shipbuilding contracts.

Under these arrangements, the Company has agreed to transfer the vessels to the lessors and, commencing on the delivery date of the vessels by the shipyard, lease the vessels back from the lessor over the applicable lease term as a capital lease. In the arrangements where the shipbuilding contracts are novated to the lessors, the lessors assume responsibility for the remaining payments under the shipbuilding contracts.

In certain of the arrangements, the lessors are companies whose only assets and operations are to hold the Company’s leases and vessels. The Company operates the vessels during the lease term, supervises the vessels’ construction before the lease term begins or is required to purchase the vessels from the lessor at the end of the lease term. As a result, the Company is considered to be the primary beneficiary of the lessors and consolidates the lessors for financial reporting purposes. The vessels are recorded as an asset and the obligations under these arrangements are recorded as a liability. The terms of the leases are as follows:

Under this arrangement, the lessor has provided financing of $144,185,000. The 12-year lease term began in June 2011, which was the vessel’s delivery date. Lease payments include an interest component based on three month LIBOR plus a 2.6% margin. At the end of the lease, the outstanding balance of up to $48,000,000 will be due and title of the vessel will transfer to the Company. As at December 31, 2018, the carrying value of the vessel under this facility was $136,311,000.

Under this arrangement, the lessor has provided financing of $109,000,000. The 12-year lease term began in March 2012, which was the vessel’s delivery date. Lease payments include an interest component based on three month LIBOR plus a 3.0% margin. At the end of the lease, the Company will have the option to purchase the vessel from the lessor for $1. As at December 31, 2018, the carrying value of the vessel under this facility was $139,407,000. The weighted average rate of interest, including the margin, was 5.64% at December 31, 2018 (2017 – 4.8%).

Under these arrangements, the lessor provided refinancing of $150,000,000. The five year lease terms began in March 2015. At delivery, the Company sold and leased the vessels back over the terms of the sale-leaseback transactions. At the end of the lease terms, the Company is obligated to purchase the vessels at a pre-determined purchase price. As at December 31, 2018, the carrying value of the vessels under these facilities was $215,080,000.

As of December 31, 2018, the carrying value of the five vessels funded under these facilities was $490,798,000 (2017 – for five vessels and one vessel under construction $602,695,000).

Under these arrangements, the lessor provided financing of $420,750,000. The 17-year lease terms began between August 2017 and January 2018, which were the vessels’ delivery dates. Lease payments include interest components based on three month LIBOR plus a 3.3% margin. At delivery, the Company sold and leased the vessels back over the term of the sale-leaseback transactions. At the end of the lease terms, the Company is obligated to purchase the vessels at a pre-determined purchase price. The Company is subject to 0.8% commitment fees calculated on the undrawn amounts. Upon delivery, these vessels commenced 17-year bareboat charters with MSC.

Based on amounts funded, payments due to the lessors for all ten vessels would be as follows:

2019	$	59,086
2020		150,401
2021		46,352
2022		46,808
2023		88,552
Thereafter		281,370
		672,569
Less amounts representing interest		(24,905	)
		647,664