6. Long-Term Debt

Long-term debt consisted of the following (dollars in thousands):


	Average Interest
	Rate at March 31,		Final	March 31,		December 31,
	2017		Maturity	2017		2016
Term loan	5.25	%	June 6, 2019	$	289,388	$	290,138
Revolving loan	5.77		December 6, 2018		6,000		—
Debt issue costs and issue discount					(4,922)		(5,439)
					290,466		284,699
Current					3,000		3,000
Noncurrent				$	287,466	$	281,699

The term loan outstanding at March 31, 2017 provides for interest at the Alternate Base Rate, a rate which is indexed to the prime rate with certain adjustments as defined, plus a margin of 3.25% or a Eurocurrency rate on deposits of one, two, three or six months but no less than 1.00% per annum plus a margin of 4.25%. The Company has selected the Eurocurrency rate as of March 31, 2017 resulting in an interest rate currently at 5.25%. The interest rate margin is subject to a further increase of 0.25% should there be a downgrade in the Company’s credit rating.

The term loan provides for interest payments no less than quarterly. In addition, quarterly principal payments of $0.8 million are required. The balance of the loan is due at maturity on June 6, 2019. The Company must prepay, generally within three months after year end, up to 75% of excess cash flow, as defined. The percent of excess cash flow required is dependent on the Company’s leverage ratio. There was no excess cash flow payment due for the year ended December 31, 2016. The Company must also make prepayments on loans in the case of certain events such as large asset sales.

The Company also has a revolving credit facility which matures on December 6, 2018. The facility has an available balance of $24.0 million as of March 31, 2017. Drawings as of and for the three months ended March 31, 2017 amounted to $6.0 million due primarily to fund the construction of the SEA-US submarine cable system. There were no amounts drawn as of or for the three months ended March 31, 2016. A commitment fee is payable quarterly to the lender under the facility. Interest on amounts outstanding is based on, at the Company’s option, the bank prime rate plus a margin of 3.0% to 6.0% or the Eurocurrency rate for one, two, three or six month periods plus a margin of 4.0% to 5.5%. The margin is dependent on the Company’s leverage, as defined in the agreement, at the time of the borrowing.

New Financing in 2017

In February 2017, the Company entered into a delayed draw credit agreement for new term loans and a new revolving credit facility. The new facility fully funded the repayment of the existing term loan and replacement of the existing revolving credit on May 4, 2017. Included in the new facility is a term loan for $90.0 million with quarterly principal payments of $1.1 million with the balance due at maturity in May 2022. Interest, payable at least quarterly, is at the Alternate Base Rate plus a margin of 2.75% or a Eurocurrency rate plus a margin of 3.75%. In addition, the facility provides for a second term loan for $230.0 million with quarterly principal payments of $1.4 million for the first eight quarters and $2.9 million per quarter thereafter with the balance due at maturity in May 2023. Interest, payable at least quarterly, is at the Alternate Base Rate plus a margin of 3.0% or a Eurocurrency rate plus a margin of 4.0%. In addition, the agreement provides for a line of credit in the amount of $30.0 million with maturity in May 2022. Interest on the line of credit is at the Alternate Base Rate plus a margin of 2.75% or a Eurocurrency rate plus a margin of 3.75%. The interest rate margins on the facility are subject to a decrease of 0.25% with a defined improvement in the Company’s leverage ratio.

Maturities

The annual requirements for principal payments on long-term debt as of March 31, 2017 are as follows (dollars in thousands):


Year ended December 31,
2017 (remaining months)	$	2,250
2018		9,000
2019		284,138
	$	295,388

Capitalized Interest

Interest capitalized by the Company amounted to $0.5 million and $0.3 million for the three months ended March 31, 2017 and 2016, respectively.