NOTE I—DEBT

At June 30, 2018 and December 31, 2017, debt (in thousands) consisted of the following:



	June 30, 2018			December 31, 2017
Senior secured credit facility:
Revolver expiring May 1, 2023 (8.0% at June 30, 2018 and 5.75% at December 31, 2017)	$	—		$	—
Term loan facility—final maturity May 1, 2025 (6.13% at June 30, 2018 and 4.75%-5.25% December 31, 2017)	1,276,800			489,075
Less: Unamortized original issue discount	(6,670		)	(944		)
Less: Unamortized debt issuance cost	(29,665		)	(3,099		)
Note payable secured by royalty interest	25,410			24,740
Customer note payable	286			745
Equipment notes payable	448			719
Capital leases	744			706
Total debt	1,267,353			511,942
Less: current portion	(13,969		)	(6,867		)
Total long-term portion of debt	$	1,253,384		$	505,075

Revolving Line-of-Credit

We have a $100.0 million revolving line-of-credit (the “Revolver”), with zero drawn and $4.0 million allocated for letters of credit as of June 30, 2018, leaving $96.0 million available under the Revolver.

Senior Secured Credit Facility

At June 30, 2018, contractual maturities of our senior secured credit facility (in thousands) are as follows:



2018	$	6,400
2019	12,800
2020	12,800
2021	12,800
Thereafter	1,232,000
Total	$	1,276,800

On May 1, 2018, we entered into the Third Amended and Restated Credit Agreement (the "Credit Agreement"). The Credit Agreement increases our existing senior debt by entering into a new $1.380 billion senior secured credit facility, consisting of a $1.280 billion term loan and a $100 million revolving credit facility that may also be used for swingline loans or letters of credit, and we may elect to increase the term loan in accordance with the terms of the Credit Agreement. Borrowings under the Credit Agreement will bear interest at variable rates as determined at our election, at LIBOR or a base rate, in each case, plus an applicable margin. In addition, under the Credit Agreement, we are required to pay a per annum facility fee and fees for letters of credit. The Credit Agreement is secured by substantially all of our assets and of our domestic subsidiaries' assets and a pledge of the equity interests in such entities. The term loan matures on May 1, 2025, and the revolving credit facility expires May 1, 2023. We incurred $37.3 million in debt issuance costs and original issue discount, of which $35.0 million was capitalized, as result of the new Credit Agreement, and wrote-off $1.1 million of capitalized debt issuance costs relating to the previously existing senior debt.

The facility contains covenants that, among other things, govern our ability, and certain of our subsidiaries' abilities, to create, incur or assume indebtedness and liens, to make acquisitions or investments, to sell assets and to pay dividends. The Credit Agreement also requires us to maintain a consolidated leverage ratio of no more than 3.75:1.00 as of the last day of any fiscal quarter whenever usage of the Revolver (other than certain undrawn letters of credit) exceeds 30% of the Revolver commitment. These covenants are subject to a number of important exceptions and qualifications. The Credit Agreement includes events of default and other affirmative and negative covenants that are usual for facilities and transactions of this type. As of June 30, 2018, and December 31, 2017, we are in compliance with all covenants in accordance with our senior secured credit facility.

Note Payable Secured by Royalty Interest

In conjunction with the acquisition of NBI in August 2016, we assumed a note payable secured by a royalty interest. The monthly royalty payment is calculated based on future tonnages and sales related to the sand shipped from our Tyler, Texas facility. The note payable is due by June 30, 2032. The note does not provide a stated interest rate. The minimum payments (in thousands) for the next five years required by the note are as follows:



2018	$	875
2019	1,750
2020	1,750
2021	1,750
2022	1,750

Under this agreement once a certain number of tons have been shipped from the Tyler facility, the minimum payments will decrease to $0.5 million per year, subject to proration in the period this threshold is met.

The royalty note payable fair value was estimated to be $22.5 million on the acquisition date. The estimate was made using a discounted cash flow model, which calculated the present value of projected future cash payments required under the agreement using a discounted rate of 14%. As of June 30, 2018, the note payable had a balance of $25.4 million. The increase in the note payable amount is due to interest paid-in-kind. The effective interest rate based on the updated projected future cash payments was 22% at June 30, 2018.