(7)INDEBTEDNESS

The following is a summary of all debt outstanding at September 30, 2018 and December 31, 2017:

	September 30,			December 31,
(In thousands)	2018			2017
Secured notes:
8.00% Secured notes due August 2022 (A)		349,954			350,000
Troms Offshore borrowings (B):
NOK denominated notes due May 2024		13,593			14,054
NOK denominated notes due January 2026		24,545			25,965
USD denominated notes due January 2027		22,116			23,345
USD denominated notes due April 2027		24,810			25,463
	$	435,018			438,827
Debt premiums and discounts, net		7,954			9,333
Less: Current portion of long-term debt		(7,671	)		(5,103	)
Total long-term debt	$	435,301			443,057

(A)	As of September 30, 2018 and December 31, 2017, the fair value (Level 2) of the Secured Notes was $369.2 million and $359.8 million, respectively.

(B)

The company pays principal and interest on these notes semi-annually. As of September 30, 2018 and December 31, 2017, the aggregate fair value (Level 2) of the Troms Offshore borrowings was $85.0 million and $88.5 million, respectively. The weighted average interest rate of the Troms Offshore borrowings as of September 30, 2018, was 5.01%.

Secured Notes Tender Offer

Pursuant to the Secured Notes indenture dated July 31, 2017, among the company, each of the guarantors party thereto, and Wilmington Trust, National Association, as Trustee and Collateral Agent (the “Indenture”) governing the Notes, the company is required to make cash offers to the registered or beneficial holders (the “Holders” and each, a “Holder”) of the Notes within 60 days of the date that the net proceeds realized by the company from Asset Sales (as defined in the Indenture, but which generally equates to 65% of the proceeds from Asset Sales, net of any commission paid) exceed $10.0 million (the “Asset Sale Threshold”). Since the issuance of the Notes, the company executed certain Asset Sales and on December 19, 2017, the aggregate net proceeds realized from such Asset Sales exceeded the Asset Sale Threshold, which triggered the obligation under the Indenture for the company to commence the Offer.

On February 2, 2018, the company commenced an offer to purchase (the “Offer”) up to $24.7 million aggregate principal amount (the “Offer Amount”) of its outstanding 8.00% senior secured notes due 2022 (the “Notes”) for cash. On March 7, 2018, we purchased $46,023 aggregate principal amount of the Notes that were validly tendered in accordance with the terms and conditions of the Offer.

Because the aggregate principal amount of tendered and accepted Notes was less than the Offer Amount, cash in an amount equal to the difference between the Offer Amount and the principal amount of the Notes accepted for tender became available for use by the company in any manner not prohibited by the Indenture and is no longer shown as restricted cash on the balance sheet. The $7.5 million restricted cash on the balance sheet at September 30, 2018, represents additional proceeds from Asset Sales since the date of the February 2018 tender offer and is, therefore, restricted by the terms of the Indenture.

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.

	Successor				Predecessor
			Period from		Period from
	Three Months		August 1, 2017		July 1, 2017
	Ended		through		through
(In thousands)	September 30, 2018		September 30, 2017		July 31, 2017
Interest and debt costs incurred, net of interest capitalized	$	7,585	$	5,240		574
Interest costs capitalized		153		—		—
Total interest and debt costs	$	7,738	$	5,240		574

	Successor				Predecessor
			Period from		Period from
	Nine Months		August 1, 2017		January 1, 2017
	Ended		through		through
(In thousands)	September 30, 2018		September 30, 2017		July 31, 2017
Interest and debt costs incurred, net of interest capitalized	$	22,731	$	5,240		32,188
Interest costs capitalized		521		—		1,817
Total interest and debt costs	$	23,252	$	5,240		34,005