Debt (Tables)

9 Months Ended

Sep. 30, 2016

The carrying value and fair value of the Company's debt is as follows (in thousands):



	September 30, 2016					December 31, 2015
	Carrying Amount			Fair Value		Carrying Amount			Fair Value
6.875% Senior Secured Notes	$	461,657		$	458,723	$	495,632		$	450,000
Deferred debt issuance costs ⁽¹⁾	(8,133		)	—		(10,643		)	—
Total	$	453,524		$	458,723	$	484,989		$	450,000


⁽¹⁾	As discussed in Footnote 2 "Significant Accounting Policies", in 2016 the Company retrospectively adopted a new ASU which requires debt issuance costs be presented as a direct deduction from the carrying amount of the debt liability.

Debt Instrument Redemption

KCG may redeem all or a part of the 6.875% Senior Secured Notes upon not less than 30 nor more than 60 days’ notice, at the redemption prices (expressed as percentages of principal amount) set forth below plus accrued and unpaid interest on the 6.875% Senior Secured Notes redeemed, to the applicable redemption date, if redeemed during the 12-month period beginning on March 15 of the years indicated below:



Year	Percentage
2017	103.438	%
2018	101.719	%
2019 and thereafter	100.000	%

Recorded Expenses with Respect to Long-term Debt

The Company recorded expenses with respect to its Debt as follows (in thousands):



	For the three months ended September 30,				For the nine months ended September 30,
	2016		2015		2016		2015
Interest expense	$	8,234	$	8,853	$	24,885	$	26,738
Debt extinguishment charges	—		—		—		25,006
Amortization of debt issuance costs ⁽¹⁾	795		841		2,411		2,697
Commitment fee ⁽²⁾	371		343		1,089		1,140
Accelerated amortization of debt issuance costs ⁽³⁾	—		—		738		—
Accelerated interest expense on repurchase of debt ⁽³⁾	—		—		298		—
Total	$	9,400	$	10,037	$	29,421	$	55,581


⁽¹⁾	Included within Interest expense on the Consolidated Statements of Operations.


⁽²⁾	Included within Other expense on the Consolidated Statements of Operations.


⁽³⁾	In conjunction with the repurchase of debt in the open market, the Company recorded the prorated accelerated portion of its original issue discount and capitalized debt issuance costs. these costs have been netted against the gain on repurchase within Investment income and other, net on the Consolidated Statements of Operations for the nine months ended September 30, 2016.