Financing Arrangements and Debt

3 Months Ended

Mar. 31, 2018

Financing Arrangements and Debt [Abstract]

Financing Arrangements and Debt

Note F – Financing Arrangements and Debt

At March 31, 2018, the Company had a $1.1 billion senior unsecured guaranteed credit facility (2016 facility) with a major banking consortium, which expires in August 2021.  At March 31, 2018, the Company had no outstanding borrowings under the 2016 facility, however, there were $91.4 million of outstanding letters of credit, which reduce the borrowing capacity of the 2016 facility.  Advances under the 2016 facility will accrue interest based, at the Company’s option, on either the London Interbank Offered rate plus an applicable margin (Eurodollar rate) or the alternate base rate (as defined in the 2016 facility agreement) plus an applicable margin. Had there been any amounts borrowed under the 2016 facility at March 31, 2018, the applicable base interest rate would have been 5.1875%.  At March 31, 2018, the Company was in compliance with all covenants related to the 2016 facility.

The Company also has a shelf registration statement on file with the U.S. Securities and Exchange Commission that permits the offer and sale of debt and/or equity securities through October 2018.

The Company and its partners are parties to a 25-year lease of production equipment at the Kakap field offshore Malaysia.  The lease has been accounted for as a capital lease, and payments under the agreement are to be made over a 15-year period through March 2029.  Current maturities of long-term debt and long-term debt on the Consolidated Balance Sheet included  $9.6 million and $125.3 million, respectively, associated with this lease at March 31, 2018.