Debt, net

Debt consists of:



	December 31, 2018		September 30, 2018
	(In millions)
3.75% convertible senior notes due 2020, net of discount and fees	$	112.9	$	111.7
Revolving Credit Facility, maturing 2021	—		—
	$	112.9	$	111.7

Senior Unsecured Revolving Credit Facility

On August 16, 2018, the Company entered into a $380.0 million senior unsecured revolving credit facility with an uncommitted $190.0 million accordion feature that could increase the size of the facility to $570.0 million, subject to certain conditions and availability of additional bank commitments. The facility also provides for the issuance of letters of credit with a sublimit equal to 50% of the revolving credit commitment. Borrowings under the revolving credit facility are subject to a borrowing base based on the book value of the Company's real estate and unrestricted cash. The maturity date of the facility is August 16, 2021. The maturity date of the revolving credit facility may be extended by up to one year on up to three occasions, subject to approval of lenders holding a majority of the commitments. Letters of credit issued under the facility reduce the available borrowing capacity. At December 31, 2018, there were no borrowings outstanding and $3.4 million of letters of credit issued under the revolving credit facility, resulting in available borrowing capacity of $376.6 million.

The revolving credit facility includes customary affirmative and negative covenants, events of default and financial covenants. The financial covenants require a minimum level of tangible net worth, a minimum level of liquidity, and a maximum allowable leverage ratio. These covenants are measured as defined in the credit agreement governing the facility and are reported to the lenders quarterly. A failure to comply with these financial covenants could allow the lending banks to terminate the availability of funds under the revolving credit facility or cause any outstanding borrowings to become due and payable prior to maturity. At December 31, 2018, the Company was in compliance with all of the covenants, limitations and restrictions of its revolving credit facility.

Secured Letter of Credit Agreement

The Company has a secured standby letter of credit facility ("LC Facility") which requires it to deposit cash as collateral with the issuing bank. At December 31, 2018, letters of credit outstanding under the LC Facility totaled $15.3 million, secured by $16.1 million in cash, which is classified as restricted cash on the Company's consolidated balance sheets.

3.75% Convertible Senior Notes due 2020

At December 31, 2018, the principal amount of the 3.75% Convertible Senior Notes due 2020 ("Convertible Notes") was $118.9 million and the unamortized debt discount was $5.4 million. The effective interest rate on the liability component was 8% and the carrying amount of the equity component was $16.8 million. The Company intends to settle the principal amount of the Convertible Notes in cash upon conversion in 2020, with any excess conversion value to be settled in shares of its common stock. At December 31, 2018 and September 30, 2018, the Company had $0.6 million and $0.7 million in unamortized deferred financing fees which were deducted from its debt.