Long-Term Debt

The Company's outstanding debt is summarized below:



		As of March 31, 2019							As of December 31, 2018
	Maturity Date	Principal		Debt Issuance Costs			Carrying Amount		Principal		Debt Issuance Costs			Carrying Amount
		(in thousands)
Amended Credit Facility ⁽¹⁾	September 14, 2023	$	70,000	$	—		$	70,000	$	—	$	—		$	—
7.0% Senior Notes ⁽²⁾	October 15, 2022	350,000		(3,000		)	347,000		350,000		(3,210		)	346,790
8.75% Senior Notes ⁽³⁾	June 15, 2025	275,000		(4,232		)	270,768		275,000		(4,403		)	270,597
Lease Financing Obligation ⁽⁴⁾	August 10, 2020	—		—			—		1,859		—			1,859
Total Debt		$	695,000	$	(7,232	)	$	687,768	$	626,859	$	(7,613	)	$	619,246
Less: Current Portion of Long-Term Debt ⁽⁵⁾		—		—			—		1,859		—			1,859
Total Long-Term Debt		$	695,000	$	(7,232	)	$	687,768	$	625,000	$	(7,613	)	$	617,387


(1)	The recorded value of the Amended Credit Facility approximates its fair value due to its floating rate structure and on financing terms currently available to the Company.


(2)	The aggregate estimated fair value of the 7.0% Senior Notes was approximately $332.7 million and $329.7 million as of March 31, 2019 and December 31, 2018, respectively, based on reported market trades of these instruments.


(3)	The aggregate estimated fair value of the 8.75% Senior Notes was approximately $263.3 million and $264.7 million as of March 31, 2019 and December 31, 2018, respectively, based on reported market trades of these instruments.


(4)	The aggregate estimated fair value of the Lease Financing Obligation was approximately $1.8 million as of December 31, 2018, based on market-based parameters of comparable term secured financing instruments. The Company exercised the early buyout option and purchased the equipment for $1.8 million on February 10, 2019.


(5)	As of December 31, 2018, the current portion of long-term debt included the Lease Financing Obligation, which was settled on February 10, 2019.

Amended Credit Facility

The Company's revolving bank credit facility (the "Amended Credit Facility"), has a maturity date of September 14, 2023, a maximum credit amount of $1.5 billion, an initial elected commitment amount of $500.0 million and an initial borrowing base of $500.0 million. The Company had $70.0 million and zero outstanding under the Amended Credit Facility as of March 31, 2019 and December 31, 2018, respectively. As credit support for future payments under a contractual obligation, a $26.0 million letter of credit has been issued under the Amended Credit Facility, which reduced the available borrowing capacity under the Amended Credit Facility as of March 31, 2019 to $404.0 million.

Interest rates are either adjusted LIBOR plus applicable margins of 1.5% to 2.5% or an alternate base rate plus applicable margins of 0.5% to 1.5%, and the unused commitment fee is between 0.375% and 0.5%. The applicable margin and the unused commitment fee rate are determined based on borrowing base utilization. The weighted average annual interest rate incurred on the Amended Credit Facility was 4.0% for the three months ended March 31, 2019.

Senior Notes

The issuer of the 7.0% Senior Notes and the 8.75% Senior Notes is HighPoint Operating Corporation (f/k/a Bill Barrett). Pursuant to supplemental indentures entered into in connection with the Merger, HighPoint Resources Corporation became a guarantor of the 7.0% Senior Notes and the 8.75% Senior Notes in March 2018. All covenants in the indentures governing the notes limit the activities of HighPoint Operating Corporation, including limitations on the ability to pay dividends, incur additional indebtedness, make restricted payments, create liens, sell assets or make loans to HighPoint Resources Corporation, but in most cases the covenants in the indentures are not applicable to HighPoint Resources Corporation. HighPoint Operating Corporation is currently in compliance with all covenants and has complied with all covenants since issuance.

Nothing in the indentures governing the 7.0% Senior Notes or the 8.75% Senior Notes prohibits the Company from repurchasing any of the notes from time to time at any price in open market purchases, negotiated transactions or by tender offer or otherwise without any notice to or consent of the holders.

Lease Financing Obligation Due 2020

The Company had a lease financing obligation with a balance of $1.9 million as of December 31, 2018 resulting from the Company's sale and subsequent lease back of certain compressors and related facilities owned by the Company (the "Lease Financing Obligation"). The Company elected to exercise the early buyout option and purchased the equipment for $1.8 million on February 10, 2019.