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Indebtedness | 9 Months Ended
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Sep. 30, 2019
Debt Disclosure [Abstract] |
Indebtedness | (10) INDEBTEDNESS We had the following debt outstanding as of the dates shown below (bank debt interest rate at September 30, 2019 is shown parenthetically). No interest was capitalized during the three and nine months ended September 30, 2019 or the year ended December 31, 2018 (in thousands).
|  | September 30, 2019 |  |  |  | December 31, 2018 |
Bank debt (3.3%) | $ | 328,000 |  |  | $ | 943,000 |
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 |  | 547,110 |  |  |  | 580,032 |
5.75% senior notes due 2021 |  | 421,425 |  |  |  | 475,952 |
5.875% senior notes due 2022 |  | 323,077 |  |  |  | 329,244 |
Other senior notes due 2022 |  | 590 |  |  |  | 590 |
Total senior notes |  | 2,783,733 |  |  |  | 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 |  | 3,160,713 |  |  |  | 3,869,329 |
Unamortized premium |  | 3,580 |  |  |  | 4,741 |
Unamortized debt issuance costs |  | (30,303 | ) |  |  | (37,209 | )
Total debt net of debt issuance costs | $ | 3,133,990 |  |  | $ | 3,836,861 |
Bank Debt In April 2018, 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 has a maturity date of April 13, 2023. The bank credit facility provides for a maximum facility amount of $4.0 billion and an initial borrowing base of $3.0 billion. The bank credit facility also 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 27, 2019, our borrowing base was reaffirmed for $3.0 billion and our bank commitment was also reaffirmed at $2.0 billion. As of September 30, 2019, our bank group was composed of twenty-seven 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. On September 30, 2019, bank commitments totaled $2.0 billion and the outstanding balance under our bank credit facility was $328.0 million, before deducting debt issuance costs. Additionally, we had $255.2 million of undrawn letters of credit leaving $1.4 billion 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 3.8% for thir d quarter 2019 compared to 3.9% for thir d quarter 2018. The weighted average interest rate was 4.0% for first nine months 2019 compared to 3.7% for first nine months 2018. A commitment fee is paid on the undrawn balance based on an annual rate of 0.30% to 0.375%. At September 30, 201 9, the commitment fee was 0.30% and the interest rate margin was 1.25% on our LIBOR loans and 0.25% on our base rate loans. In October 2019, we increased our bank commitment amount to $2.4 billion. Our bank group continues to be composed of twenty-seven financial institutions.As part of the negotiation of the increase in the bank commitment, an additional fee was paid to those banks agreeing to participate in the facility increase and there was a revision to the limitation on restricted payments as defined in the credit facility agreement. 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. Early Extinguishment of Debt In third quarter 2019, we purchased in the open market $32.9 million principal amount of our 5.00% senior notes due 2022, $6.2 million principal amount of our 5.875% senior notes due 2022 and $54.5 million principal amount of our 5.75% senior notes due 2021. We recognized a gain on early extinguishment of debt, including transaction costs and the expensing of the remaining deferred financing costs on the repurchased debt. Senior Notes and Senior Subordinated Notes If we experience a change of control, noteholders may require us to repurchase all or a portion of our senior notes and 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 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 September 30, 2019.

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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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