XML 27 R15.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Indebtedness | 3 Months Ended
--- | ---
Mar. 31, 2018
Debt Disclosure [Abstract] |
Indebtedness | (9) INDEBTEDNESS We had the following debt outstanding as of the dates shown below (bank debt interest rate at March 31, 2018 is shown parenthetically). No interest was capitalized during the three months ended March 31, 2018 or the year ended December 31, 2017 (in thousands).
|  | March 31, 2018 |  |  |  | December 31, 2017 |
Bank debt (3.4%) | $ | 1,182,000 |  |  | $ | 1,211,000 |
Senior notes: |  |  |  |  |  |  |
4.875% senior notes due 2025 |  | 750,000 |  |  |  | 750,000 |
5.00% senior notes due 2023 |  | 741,531 |  |  |  | 741,531 |
5.00% senior notes due 2022 |  | 580,032 |  |  |  | 580,032 |
5.75% senior notes due 2021 |  | 475,952 |  |  |  | 475,952 |
5.875% senior notes due 2022 |  | 329,244 |  |  |  | 329,244 |
Other senior notes due 2022 |  | 590 |  |  |  | 590 |
Total senior notes |  | 2,877,349 |  |  |  | 2,877,349 |
Senior subordinated notes: |  |  |  |  |  |  |
5.00% senior subordinated notes due 2023 |  | 7,712 |  |  |  | 7,712 |
5.00% senior subordinated notes due 2022 |  | 19,054 |  |  |  | 19,054 |
5.75% senior subordinated notes due 2021 |  | 22,214 |  |  |  | 22,214 |
Total senior subordinated notes |  | 48,980 |  |  |  | 48,980 |
Total debt |  | 4,108,329 |  |  |  | 4,137,329 |
Unamortized premium |  | 5,712 |  |  |  | 6,027 |
Unamortized debt issuance costs |  | (32,347 | ) |  |  | (34,550 | )
Total debt net of debt issuance costs | $ | 4,081,694 |  |  | $ | 4,108,806 |
Bank Debt In October 2014, we entered into an amended and restated revolving bank facility, which we refer to as our bank debt or our bank credit facility, which is secured by substantially all of our assets and had a maturity date of October 16, 2019. The bank credit facility provides for a maximum facility amount of $4.0 billion. The bank credit facility provides for a borrowing base subject to redeterminations annually by May and for event-driven unscheduled redeterminations. As part of our annual redetermination completed on March 21, 2017, our borrowing base was reaffirmed at $3.0 billion and our bank commitment was also reaffirmed at $2.0 billion. As of March 31, 2018, our bank group was composed of twenty-nine financial institutions with no one bank holding more than 5.8% of the total facility. The borrowing base may be increased or decreased based on our request and sufficient proved reserves, as determined by the bank group. The commitment amount may be increased to the borrowing base, subject to payment of a mutually acceptable commitment fee to those banks agreeing to participate in the facility increase. As of March 31, 2018, the outstanding balance under our bank credit facility was $1.2 billion, before deducting debt issuance costs. Additionally, we had $281.4 million of undrawn letters of credit leaving $536.6 million of committed borrowing capacity available under the facility. During a non-investment grade period, borrowings under the bank credit facility can either be at the alternate base rate (“ABR,” as defined in the bank credit facility agreement) plus a spread ranging from 0.25% to 1.25% or LIBOR borrowings at the LIBOR Rate (as defined in the bank credit facility agreement) plus a spread ranging from 1.25% to 2.25%. The applicable spread is dependent upon borrowings relative to the borrowing base. We may elect, from time to time, to convert all or any part of our LIBOR loans to base rate loans or to convert all or any of the base rate loans to LIBOR loans. The weighted average interest rate was 3.4% for first quarter 2018 compared to 2.4% for first quarter 2017. A commitment fee is paid on the undrawn balance based on an annual rate of 0.30% to 0.375%. At March 31, 2018, the commitment fee was 0.3% and the interest rate margin was 1.5% on our LIBOR loans and 0.5% on our base rate loans. On April 13, 2018, we entered into an amended and restated revolving bank credit facility, which we refer to as our new credit facility, which is secured by substantially all of our assets and has a maturity date of April 13, 2023. Our bank group is now composed of twenty-seven financial institutions with no one bank holding more than 5.8% of the total facility. The new credit facility provides for a maximum facility amount of $4.0 billion and provides for a borrowing base subject to redeterminations annually by May and for event-driven unscheduled redeterminations. Borrowings under the new credit facility are at costs and terms similar to the bank credit facility detailed above and are subject to customary financial and non-financial covenants. At any time during which we have an investment grade debt rating from Moody’s Investors Service, Inc. or Standard & Poor’s Ratings Services and we have elected, at our discretion, to effect the investment grade rating period, certain collateral security requirements, including the borrowing base requirement and restrictive covenants, will cease to apply and an additional financial covenant (as defined in the bank credit facility) will be imposed. During the investment grade period, borrowings under the credit facility can either be at the ABR plus a spread ranging from 0.125% to 0.75% or at the LIBOR Rate plus a spread ranging from 1.125% to 1.75% depending on our debt rating. The commitment fee paid on the undrawn balance would range from 0.15% to 0.30%. We currently do not have an investment grade debt rating. Senior Notes In September 2016, in conjunction with the MRD Merger, we issued $329.2 million senior unsecured 5.875% notes due 2022 (the “5.875% Notes”). In addition, we also completed a debt exchange offer to exchange senior subordinated notes for the following senior notes (in thousands):
|  | Principal Amount
5.00% senior notes due 2023 | $ | 741,531
5.00% senior notes due 2022 | $ | 580,032
5.75% senior notes due 2021 | $ | 475,952
All of the notes were offered to qualified institutional buyers and to non-U.S. persons outside the United States in compliance with Rule 144A and Regulation S under the Securities Act of 1933, as amended (the “Securities Act”). On October 5, 2017, the 5.875% Notes, the 5.00% senior notes due 2023, the 5.00% senior notes due 2022 and the 5.75% senior notes due 2021 (collectively, the “Old Notes”) were exchanged for an equal principal amount of registered notes pursuant to an effective registration statement on Form S-4 filed with the SEC on August 9, 2017 under the Securities Act (the “New Notes”). The New Notes are identical to the Old Notes except the New Notes are registered under the Securities Act and do not have restrictions on transfer, registration rights or provisions for additional interest. Under certain circumstances, if we experience a change of control, noteholders may require us to repurchase all of our senior notes at 101% of the aggregate principal amount plus accrued and unpaid interest, if any. Senior Subordinated Notes If we experience a change of control, noteholders may require us to repurchase all or a portion of our senior subordinated notes at 101% of the aggregate principal amount plus accrued and unpaid interest, if any. All of the senior subordinated notes and the guarantees by our subsidiary guarantors are general, unsecured obligations and are subordinated to our bank debt and are subordinated to existing and future senior debt that we or our subsidiary guarantors are permitted to incur. Guarantees Range is a holding company which owns no operating assets and has no significant operations independent of its subsidiaries. The guarantees by our subsidiaries, which are directly or indirectly owned by Range, of our senior notes, senior subordinated notes and our bank credit facility are full and unconditional and joint and several, subject to certain customary release provisions. A subsidiary guarantor may be released from its obligations under the guarantee:
| • | in the event of a sale or other disposition of all or substantially all of the assets of the subsidiary guarantor or a sale or other disposition of all the capital stock of the subsidiary guarantor, to any corporation or other person (including an unrestricted subsidiary of Range) by way of merger, consolidation, or otherwise; or |
| • | if Range designates any restricted subsidiary that is a guarantor to be an unrestricted subsidiary in accordance with the terms of the indenture. |
Debt Covenants Our bank credit facility contains negative covenants that limit our ability, among other things, to pay cash dividends, incur additional indebtedness, sell assets, enter into certain hedging contracts, change the nature of our business or operations, merge, consolidate, or make certain investments. In addition, we are required to maintain a ratio of EBITDAX (as defined in the bank credit facility agreement) to cash interest expense of equal to or greater than 2.5 and a current ratio (as defined in the bank credit facility agreement) of no less than 1.0. In addition, the ratio of the present value of proved reserves (as defined in the credit agreement) to total debt must be equal to or greater than 1.5 until Range has two investment grade ratings. We were in compliance with applicable covenants under the bank credit facility at March 31, 2018.

X
- References No definition available. + Details
Name: | us-gaap_DebtDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
Name: | us-gaap_DebtDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration