(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

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