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Note 9 - Debt | 9 Months Ended
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Sep. 30, 2020
Notes to Financial Statements |
Debt Disclosure [Text Block] |
(9) | DEBT
The following is a summary of all debt outstanding:
|  | September 30, |  |  | December 31, |
(In thousands) |  | 2020 |  |  | 2019 |
Secured notes: |  |  |  |  |  |  |  |
8.00% Senior secured notes due August 2022 (A) (B) (C) |  | $ | 197,049 |  |  | $ | 224,793 |
Troms Offshore borrowings (D): |  |  |  |  |  |  |  |
NOK denominated notes due May 2024 |  |  | 8,683 |  |  |  | 10,260 |
NOK denominated notes due January 2026 |  |  | 16,746 |  |  |  | 20,788 |
USD denominated notes due January 2027 |  |  | 17,816 |  |  |  | 20,273 |
USD denominated notes due April 2027 |  |  | 20,240 |  |  |  | 21,545 |
|  | $ | 260,534 |  |  | $ | 297,659 |
Debt premiums and discounts, net |  |  | (4,779 | ) |  |  | (8,725 | )
Less: Current portion of long-term debt |  |  | (9,576 | ) |  |  | (9,890 | )
Total long-term debt |  | $ | 246,179 |  |  | $ | 279,044 |
| (A) | As of September 30, 2020 and December 31, 2019 the fair value (Level 2) of the Secured Notes was $193.9 million and $237.6 million, respectively.
| (B) | The $26.4 million restricted cash on the balance sheet at September 30, 2020, represents approximately 65% of net proceeds from asset dispositions since the date of the last tender offer and is restricted by the terms of the Indenture. In connection with the asset dispositions, we have commenced a mandatory tender offer for $28.7 million aggregate principal amount of Secured Notes in accordance with the Senior Notes Indenture, which will be terminated if the consent solicitation described below is approved by the requisite holders of Senior Notes, allowing the tender offer for $50 million aggregate principal amount of Senior Notes described below to proceed.
| (C) | During the three and nine months ended September 30, 2020, we repurchased $27.7 million of the Secured Notes at a discount of $1.5 million in open market transactions.
| (D) | We pay principal and interest on these notes semi-annually. As of September 30, 2020 and December 31, 2019, the aggregate fair value (Level 2) of the Troms Offshore borrowings was $62.6 million and $72.9 million, respectively. The weighted average interest rate of the Troms Offshore borrowings as of September 30, 2020 was 5.0%.
We may from time to time seek to retire or purchase our outstanding debt through cash purchases and/or exchanges for equity securities, in open market purchases, privately negotiated transactions, tender offers, exchange offers, redemptions, one or more additional offers, or otherwise. Such repurchases or exchanges, if any, will depend on prevailing market conditions, our liquidity requirements, contractual restrictions and other factors. The amounts involved may be material. In October 2020 we executed a consent to conform the TROMS offshore borrowing covenants to those of the Senior Secured Notes. As a condition of this consent, we will be prepaying approximately $12.4 million of the TROMS debt in the fourth quarter of 2020 and another $8 million in the first half of 2021. If the company were to make additional prepayments of Senior Secured Notes, we would be obliged to make additional prepayments of Troms debt up to a cumulative balance of $35 million. On November 3, 2020, we launched a consent solicitation and concurrent tender offer for $50 million aggregate principal amount of Senior Notes. We are soliciting consents to approve amendments to several covenants under the Senior Notes Indenture, as well as a waiver of the mandatory tender offer discussed in Item B under the Debt table above.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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