DEBT

Senior Notes—As of December 31, 2019, we had outstanding $50 million of senior notes (the "Notes") consisting of the following series:


•	$20 million of Senior Notes, Series A, due April 16, 2020


•	$15 million of Senior Notes, Series B, due April 14, 2023


•	$15 million of Senior Notes, Series C, due April 16, 2025

The agreement governing the Notes contains certain financial covenants including those discussed below:


•	We are required to maintain a minimum fixed charge coverage ratio of 1.30 to 1.0 as of the last day of each quarter, measured based on the previous four quarters. Our fixed charge coverage ratio as of December 31, 2019, was 10.4 to 1.0, therefore we were in compliance with this covenant.


•	We are allowed a maximum leverage ratio of 3.5 to 1.0 as of the last day of each quarter, measured based on the previous four quarters. Our leverage ratio as of December 31, 2019, was 1.3 to 1.0 therefore we were in compliance with this covenant.

Fixed charge coverage ratio and leverage ratio are calculated in accordance with the agreement governing the Notes.

For the year ended December 31, 2019, the interest rates on the Notes were 3.73% for the Series A Notes, 4.63% for the Series B Notes and 4.78% for the Series C Notes. These rates represent the lowest interest rates available under the Notes. The interest rates may adjust upward if we do not continue to meet certain financial covenants.

For the ten months ended October 31, 2017, the interest rates on the Notes were 7.73% for the Series A Notes, 8.63% for the Series B Notes and 8.78% for the Series C Notes. Beginning November 1, 2017, the interest rates on the Notes were reduced to 3.73% for the Series A Notes, 4.63% for the Series B Notes and 4.78% for the Series C Notes.

We have granted to the collateral agent for the noteholders a first lien on substantially all of our non-current assets and a second lien on substantially all of our current assets. We are required to offer to prepay the Notes with proceeds of dispositions of certain specified property and with the proceeds of certain equity issuances, as set forth in the agreement. The obligations under the Notes are unconditionally guaranteed by several of our subsidiaries.

We were in compliance with the applicable covenants under the agreement governing the Notes as of December 31, 2019.

Our outstanding long-term debt, net, was as follows (in thousands):



	December 31, 2019			December 31, 2018
Notes, at carrying value	$	50,000		$	50,000
Less current portion of Notes	(20,000		)	—
Less deferred financing costs	(247		)	(358		)
Long-term portion of Notes, net	$	29,753		$	49,642

Credit Facility—We maintain a secured revolving credit facility with Bank of Montreal. In August 2019, we amended and restated the credit facility to change it from an asset-backed facility to a cash-flow facility, to increase the amount available under the facility from $50 million to $75 million plus an additional $75 million accordion, and to extend the maturity date to August 1, 2024. The revolving credit facility also provides for a $7.5 million sublimit for the issuance of letters of credit. As of December 31, 2019, borrowings under the credit facility bore interest at LIBOR (London Interbank Offered Rate) plus an applicable margin of 1.25% to 2.00% per annum, based on our leverage ratio. We have granted to Bank of Montreal a first lien on substantially all of our current assets and a second lien on substantially all of our non-current assets. The obligations under the credit facility are unconditionally guaranteed by several of our subsidiaries.

We occasionally borrow and repay amounts under the facility for near-term working capital needs or other purposes and may do so in the future. For the years ended December 31, 2019, and 2018, we borrowed $30.3 million and $13.5 million, respectively, and repaid $10.5 million and $17.4 million, respectively, under the facility. As of December 31, 2019, we had $19.8 million borrowings outstanding and $1.0 million in an outstanding letter of credit under the facility. As of December 31, 2018, we had no borrowings outstanding and $1.0 million in outstanding letters of credit under the facility. We have $54.2 million available under the facility as of December 31, 2019.

We were in compliance with the applicable covenants under the facility as of December 31, 2019.

Interest Expense—Interest expense is recorded net of any capitalized interest associated with investments in capital projects. We incurred gross interest expense of $3.2 million, $4.0 million, and $11.8 million for the years ended December 31, 2019, 2018, and 2017, respectively.

Amounts included in interest expense for the years ended December 31, 2019, 2018, and 2017 (in thousands) are as follows:



	Year ended December 31,
	2019		2018		2017
Interest on notes and credit facility	$	2,908	$	2,849	$	7,043
Make-whole payments	—		402		3,001
Amortization of deferred financing costs	303		732		1,778
Gross interest expense	3,211		3,983		11,822
Less capitalized interest	180		128		130
Interest expense, net	$	3,031	$	3,855	$	11,692