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INDEBTEDNESS | 9 Months Ended
--- | ---
Dec. 31, 2015
Debt Disclosure [Abstract] |
INDEBTEDNESS |
(5) | INDEBTEDNESS
Senior Notes, Revolving Credit and Term Loan Agreement In May 2015, the company amended and extended its existing credit facility. The amended credit agreement matures in June 2019 and provides for a $900 million, five-year credit facility consisting of (i) a $600 million revolving credit facility and (ii) a $300 million term loan facility. At December 31, 2015 the company was in compliance with all covenants set forth in its debt facilities and note indentures, however, given the current trajectory of offshore energy market conditions, which has had a corresponding negative effect on our vessel revenue and other financial metrics, it is possible that in future quarters (and possibly as early as fiscal 2017) that the company may cease being in compliance with interest coverage ratios contained in certain of its debt facilities and senior note indentures. Failure to meet the required interest coverage ratios would be an event of default under certain of our debt facilities. The company is in dialogue with the principal lenders and noteholders to obtain amendments and/or waivers of these covenants in advance of any such default occurring, with the goal of finalizing any amendments and/or waivers prior to any possible covenant breach. Any such amendments and/or waivers would require successful negotiations with our bank group and certain noteholders, and would likely require the company to make certain concessions, such as potentially providing collateral or accepting a reduction in total borrowing capacity under the revolving credit facility. Obtaining the covenant relief that we are seeking will require the company to successfully harmonize the interests of the noteholders and the banks. U.S. Dollar Denominated Debt The following is a summary of debt outstanding at December 31, 2015 and March 31, 2015:
|  | December 31, |  |  | March 31, |
(In thousands, except weighted average data) |  | 2015 |  |  | 2015 |
Credit facility: |  |  |  |  |  |  |  |
Term loan agreement (A) |  | $ | 300,000 |  |  |  | 300,000 |
Revolving line of credit (A) (B) |  |  | — |  |  |  | 20,000 |
September 2013 senior unsecured notes: |  |  |  |  |  |  |  |
Aggregate debt outstanding |  | $ | 500,000 |  |  |  | 500,000 |
Weighted average remaining life in years |  |  | 7.6 |  |  |  | 8.4 |
Weighted average coupon rate on notes outstanding |  |  | 4.86 | % |  |  | 4.86 | %
Fair value of debt outstanding (Level 2) |  | $ | 425,950 |  |  |  | 516,879 |
August 2011 senior unsecured notes: |  |  |  |  |  |  |  |
Aggregate debt outstanding |  | $ | 165,000 |  |  |  | 165,000 |
Weighted average remaining life in years |  |  | 4.8 |  |  |  | 5.6 |
Weighted average coupon rate on notes outstanding |  |  | 4.42 | % |  |  | 4.42 | %
Fair value of debt outstanding (Level 2) |  | $ | 147,081 |  |  |  | 167,910 |
September 2010 senior unsecured notes (C): |  |  |  |  |  |  |  |
Aggregate debt outstanding |  | $ | 382,500 |  |  |  | 425,000 |
Weighted average remaining life in years |  |  | 4.3 |  |  |  | 4.6 |
Weighted average coupon rate on notes outstanding |  |  | 4.35 | % |  |  | 4.25 | %
Fair value of debt outstanding (Level 2) |  | $ | 344,634 |  |  |  | 431,296 |
July 2003 senior unsecured notes (D): |  |  |  |  |  |  |  |
Aggregate debt outstanding |  | $ | — |  |  |  | 35,000 |
Weighted average remaining life in years |  |  | — |  |  |  | 0.3 |
Weighted average coupon rate on notes outstanding |  |  | — |  |  |  | 4.61 | %
Fair value of debt outstanding (Level 2) |  | $ | — |  |  |  | 35,197 |
May 2015 notes (E) (F): |  |  |  |  |  |  |  |
Amount outstanding |  | $ | 30,033 |  |  |  | — |
Fair value of debt outstanding (Level 2) |  |  | 30,047 |  |  |  | — |
March 2015 notes (F): |  |  |  |  |  |  |  |
Amount outstanding |  | $ | 28,259 |  |  |  | 29,488 |
Fair value of debt outstanding (Level 2) |  |  | 28,265 |  |  |  | 29,501 |
(A) | Fair values approximate carrying values because the borrowings bear interest at variable rates.
(B) | $600 million and $580 million was available under the revolver at December 31, 2015 and March 31, 2015, respectively.
(C) | Principal repayments of $42.5 million were paid during the quarter ended December 31, 2015.
(D) | Remaining $35 million of borrowings fully paid in July 2015.
(E) | In May 2015, a wholly owned subsidiary of the company entered into a $31.3 million, U.S. dollar denominated, 12 year borrowing agreement which matures in April 2027 and is secured by a guarantee by Tidewater Inc. The loan requires semi-annual principal payments of $1.3 million (plus accrued interest) and bears interest at a fixed rate of 2.92% plus a spread based on Tidewater Inc.’s consolidated funded indebtedness to total capitalization ratio (currently equal to 1.30% for a total rate of 4.22%).
(F) | Notes require semi-annual principal payments.
Norwegian Kroner Denominated Debt The following is a summary of the Norwegian Kroner (NOK) denominated borrowings outstanding at December 31, 2015 and March 31, 2015, and their U.S. dollar equivalents:
|  | December 31, |  |  | March 31, |
(In thousands) |  | 2015 |  |  | 2015 |
3.81% January 2014 notes (A): |  |  |  |  |  |  |  |
NOK denominated |  |  | 262,500 |  |  |  | 275,000 |
U.S. dollar equivalent |  | $ | 29,606 |  |  |  | 34,234 |
Fair value in U.S. dollar equivalent (Level 2) |  |  | 29,612 |  |  |  | 34,226 |
5.38% May 2012 notes (A): |  |  |  |  |  |  |  |
NOK denominated |  |  | 144,840 |  |  |  | 161,880 |
U.S. dollar equivalent |  | $ | 16,336 |  |  |  | 20,152 |
Fair value in U.S. dollar equivalent (Level 2) |  |  | 16,329 |  |  |  | 19,924 |
Variable rate borrowings: |  |  |  |  |  |  |  |
June 2013 borrowing agreement (B) (C) |  |  |  |  |  |  |  |
NOK denominated |  |  | — |  |  |  | 25,000 |
U.S. dollar equivalent |  | $ | — |  |  |  | 3,112 |
May 2012 borrowing agreement (B) (D) |  |  |  |  |  |  |  |
NOK denominated |  |  | — |  |  |  | 20,000 |
U.S. dollar equivalent |  | $ | — |  |  |  | 2,490 |
(A) | Notes require semi-annual principal payments.
(B) | Fair values approximate carrying values because the borrowings bear interest at variable rates.
(C) | Remaining note balance was repaid in September 2015. The company recognized a $0.1 million gain on early extinguishment.
(D) | Note was repaid in May 2015 upon maturity.
Debt Costs The company capitalizes a portion of its interest costs incurred on borrowed funds used to construct vessels. The following is a summary of interest and debt costs incurred, net of interest capitalized, for the quarters and nine-month periods ended December 31:
|  | Quarter Ended |  |  | Nine Months Ended |
|  | December 31, |  |  | December 31, |
(In thousands) |  | 2015 |  |  | 2014 |  |  | 2015 |  |  | 2014 |
Interest and debt costs incurred, net of interest capitalized |  | $ | 13,312 |  |  |  | 12,239 |  |  |  | 39,741 |  |  |  | 37,927 |
Interest costs capitalized |  |  | 2,513 |  |  |  | 3,638 |  |  |  | 8,280 |  |  |  | 9,920 |
Total interest and debt costs |  | $ | 15,825 |  |  |  | 15,877 |  |  |  | 48,021 |  |  |  | 47,847 |

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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 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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