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Indebtedness | 6 Months Ended
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Sep. 30, 2014
Indebtedness |
(5) | INDEBTEDNESS
Senior Notes, Revolving Credit and Term Loan Agreement A summary of debt outstanding at September 30, 2014 and March 31, 2014, are as follows:
|  |  |  | September 30, |  | March 31,
(In thousands, except weighted average data) |  |  |  | 2014 |  | 2014
Credit facility: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Term loan agreement (A) |  |  | $ |  |  |  |  |  | 300,000 |  |  |  |  | 300,000 |
Revolving line of credit (A) (B) |  |  |  |  |  |  |  |  | --- |  |  |  |  | --- |
September 2013 senior unsecured notes: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Aggregate debt outstanding |  |  | $ |  |  |  |  |  | 500,000 |  |  |  |  | 500,000 |
Weighted average remaining life in years |  |  |  |  |  |  |  |  | 8.9 |  |  |  |  | 9.4 |
Weighted average coupon rate on notes outstanding |  |  |  |  |  |  |  |  | 4.86% |  |  |  |  | 4.86% |
Fair value of debt outstanding (Level 2) |  |  | $ |  |  |  |  |  | 525,860 |  |  |  |  | 520,979 |
August 2011 senior unsecured notes: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Aggregate debt outstanding |  |  | $ |  |  |  |  |  | 165,000 |  |  |  |  | 165,000 |
Weighted average remaining life in years |  |  |  |  |  |  |  |  | 6.1 |  |  |  |  | 6.6 |
Weighted average coupon rate on notes outstanding |  |  |  |  |  |  |  |  | 4.42% |  |  |  |  | 4.42% |
Fair value of debt outstanding (Level 2) |  |  | $ |  |  |  |  |  | 170,438 |  |  |  |  | 168,653 |
September 2010 senior unsecured notes: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Aggregate debt outstanding |  |  | $ |  |  |  |  |  | 425,000 |  |  |  |  | 425,000 |
Weighted average remaining life in years |  |  |  |  |  |  |  |  | 5.1 |  |  |  |  | 5.6 |
Weighted average coupon rate on notes outstanding |  |  |  |  |  |  |  |  | 4.25% |  |  |  |  | 4.25% |
Fair value of debt outstanding (Level 2) |  |  | $ |  |  |  |  |  | 437,951 |  |  |  |  | 436,264 |
July 2003 senior unsecured notes: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Aggregate debt outstanding |  |  | $ |  |  |  |  |  | 35,000 |  |  |  |  | 35,000 |
Weighted average remaining life in years |  |  |  |  |  |  |  |  | 0.8 |  |  |  |  | 1.3 |
Weighted average coupon rate on notes outstanding |  |  |  |  |  |  |  |  | 4.61% |  |  |  |  | 4.61% |
Fair value of debt outstanding (Level 2) |  |  | $ |  |  |  |  |  | 35,699 |  |  |  |  | 36,018 |
(A) Fair values approximate carrying values because the borrowings bear interest at variable rates. (B) $600 million was available under the revolver at September 30, 2014 and March 31, 2014. Norwegian Kroner Denominated Debt A summary of the Norwegian Kroner (NOK) denominated borrowings outstanding at September 30, 2014 and March 31, 2014, and their U.S. dollar equivalents are as follows:
|  |  |  | September 30, |  |  | March 31, |
(In thousands) |  |  |  | 2014 |  |  | 2014 |
3.81% January 2014 notes: |  |  |  |  |  |  |  |  |  |
NOK denominated |  |  |  |  | 287,500 |  |  |  | 300,000 |
U.S. dollar equivalent |  | $ |  |  | 46,434 |  |  |  | 50,028 |
Fair value in U.S. dollar equivalent (Level 2) |  |  |  |  | 46,442 |  |  |  | 50,044 |
5.38% May 2012 notes: |  |  |  |  |  |  |  |  |  |
NOK denominated |  |  |  |  | 170,400 |  |  |  | 178,920 |
U.S. dollar equivalent |  | $ |  |  | 27,521 |  |  |  | 29,867 |
Fair value in U.S. dollar equivalent (Level 2) |  |  |  |  | 27,267 |  |  |  | 29,588 |
Variable rate borrowings: |  |  |  |  |  |  |  |  |  |
June 2013 borrowing agreement (C) |  |  |  |  |  |  |  |  |  |
NOK denominated |  |  |  |  | 25,000 |  |  |  | 25,000 |
U.S. dollar equivalent |  | $ |  |  | 4,038 |  |  |  | 4,168 |
May 2012 borrowing agreement (C) |  |  |  |  |  |  |  |  |  |
NOK denominated |  |  |  |  | 20,000 |  |  |  | 35,000 |
U.S. dollar equivalent |  | $ |  |  | 3,230 |  |  |  | 5,837 |
(C) Fair values approximate carrying values because the borrowings bear interest at variable rates. During the second quarter of fiscal 2014, the company repaid prior to maturity 500 million Norwegian Kroner (NOK) denominated (approximately $82.1 million) public bonds (plus accrued interest) that had been issued by Troms Offshore in April 2013. The repayment of these bonds, at an average price of approximately 105.0% of par value, resulted in the recognition of a loss on early extinguishment of debt of approximately 26.0 million NOK (or $4.1 million). The bonds, which were due to mature in April 2016, bore interest based on the three month Norwegian Interbank Offered Rate (“NIBOR”) plus 5.40%. Debt Costs The company capitalizes a portion of its interest costs incurred on borrowed funds used to construct vessels. Interest and debt costs incurred, net of interest capitalized, for the quarters and six-month periods ended September 30, are as follows:
|  | Quarter Ended September 30, |  |  | Six Months Ended September 30, |
(In thousands) |  | 2014 |  |  | 2013 |  |  | 2014 |  |  | 2013 |
Interest and debt costs incurred, net of interest capitalized |  | $ | 12,559 |  |  |  | 9,918 |  |  |  | 25,688 |  |  |  | 18,831 |
Interest costs capitalized |  |  | 3,410 |  |  |  | 2,636 |  |  |  | 6,282 |  |  |  | 5,598 |
Total interest and debt costs |  | $ | 15,969 |  |  |  | 12,554 |  |  |  | 31,970 |  |  |  | 24,429 |

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19, 20, 22 -Article 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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