XML 27 R16.htm IDEA: XBRL DOCUMENT
v3.21.2

Indebtedness | 9 Months Ended
--- | ---
Sep. 30, 2021
Debt Disclosure [Abstract] |
Indebtedness | (9) INDEBTEDNESS We had the following debt outstanding as of the dates shown below (bank debt interest rate at September 30, 2021 is shown parenthetically). No interest was capitalized during the nine months ended September 30, 2021 or the year ended December 31, 2020 (in thousands).
|  | September 30, 2021 |  |  | December 31, 2020 |
Bank debt (2.4%) |  | $ | 30,000 |  |  | $ | 702,000 |
Senior notes: |  |  |  |  |  |
4.875% senior notes due 2025 |  |  | 750,000 |  |  |  | 750,000 |
5.00% senior notes due 2022 |  |  | 169,589 |  |  |  | 169,589 |
5.00% senior notes due 2023 |  |  | 532,335 |  |  |  | 532,335 |
5.75% senior notes due 2021 |  |  | — |  |  |  | 25,496 |
5.875% senior notes due 2022 |  |  | 48,528 |  |  |  | 48,528 |
8.25% senior notes due 2029 |  |  | 600,000 |  |  |  | — |
9.25% senior notes due 2026 |  |  | 850,000 |  |  |  | 850,000 |
Other senior notes due 2022 |  |  | — |  |  |  | 490 |
Total senior notes |  |  | 2,950,452 |  |  |  | 2,376,438 |
Senior subordinated notes: |  |  |  |  |  |
5.00% senior subordinated notes due 2022 |  |  | — |  |  |  | 9,730 |
5.00% senior subordinated notes due 2023 |  |  | — |  |  |  | 7,712 |
5.75% senior subordinated notes due 2021 |  |  | — |  |  |  | 19,896 |
Total senior subordinated notes |  |  | — |  |  |  | 37,338 |
Total debt |  |  | 2,980,452 |  |  |  | 3,115,776 |
Unamortized premium |  |  | 254 |  |  |  | 457 |
Unamortized debt issuance costs |  |  | (32,326 | ) |  |  | (30,625 | )
Total debt net of debt issuance costs |  |  | 2,948,380 |  |  |  | 3,085,608 |
Less current maturities of long-term debt |  |  | (217,909 | ) |  |  | (45,356 | )
Total long-term debt |  | $ | 2,730,471 |  |  | $ | 3,040,252 |
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 periodic redeterminations and for event-driven unscheduled redeterminations. As of September 30, 2021, our bank group was composed of twenty-five financial institutions. 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. 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 2.0% for third quarter 2021 compared to 2.4% for third quarter 2020. The weighted average interest rate was 2.1% for first nine months 2021 compared to 2.7% for first nine months 2020. A commitment fee is paid on the undrawn balance based on an annual rate of 0.30% to 0.375%. At September 30, 2021, the commitment fee was 0.30% and the interest rate margin was 1.75% on our LIBOR loans and 0.75% on our ABR loans. As part of our redetermination completed in September 2021, our borrowing base was reaffirmed for $3.0 billion and our bank commitment was also reaffirmed at $2.4 billion. On September 30, 2021, bank commitments totaled $2.4 billion and the outstanding balance under our bank credit facility was $30.0 million, before deducting debt issuance costs. Additionally, we had $334.6 million of undrawn letters of credit, leaving $2.0 billion of committed borrowing capacity available under the facility. New Senior Notes In January 2021, we issued $600.0 million aggregate principal amount of 8.25% senior notes due 2029 (the 8.25% Notes) for net proceeds of $590.8 million after underwriting expenses and commissions of $9.2 million. The notes were issued at par. The 8.25% 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 of the Securities Act of 1933, as amended (the Securities Act). Interest due on the 8.25% Notes is payable semi-annually in January and July and is unconditionally guaranteed on a senior unsecured basis by all of our subsidiary guarantors. On or after January 15, 2027, we may redeem the 8.25% Notes, in whole or in part and from time to time, at 100% of the principal amounts plus accrued and unpaid interest. We may redeem the notes prior to their maturity at redemption prices based on a premium, plus accrued and unpaid interest as described in the indenture governing the 8.25% Notes. Upon occurrence of certain changes in control, we must offer to repurchase the 8.25% Notes. The 8.25% Notes are unsecured and are subordinated to all of our existing and future secured debt, rank equally with all of our existing and future unsecured debt and rank senior to all of our existing and future subordinated debt. On the closing of the issuance of the 8.25% Notes, we used the proceeds to repay borrowings under our bank credit facility. Early Redemption In first quarter 2021, based on the terms of the indentures governing certain of our senior and senior subordinated notes, we notified the trustee that we were electing to redeem the outstanding principal amounts of the following notes (in thousands):
|  | Outstanding Principal Amount |
5.75% senior notes due 2021 |  | $ | 25,496 |
5.875% senior notes due 2022 |  | $ | 490 |
5.75% senior subordinated notes 2021 |  | $ | 19,896 |
5.00% senior subordinated notes 2022 |  | $ | 9,730 |
5.00% senior subordinated notes 2023 |  | $ | 7,712 |
The redemption price equaled 100% of the unpaid principal plus accrued and unpaid interest. The redemption date was April 2, 2021. We recognized a loss on early extinguishment of debt in second quarter 2021 of approximately $63,000 which represents expensing of the remaining deferred financing costs. Senior Notes If we experience a change of control, noteholders may require us to repurchase all or a portion of our senior notes at 101% of the aggregate principal amount plus accrued and unpaid interest, if any. 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 and our bank credit facility are full and unconditional and joint and several, subject to certain customary release provisions. The assets, liabilities and results of operations of Range and our guarantor subsidiaries are not materially different than our consolidated financial statements. 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 bank credit facility 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, 2021.

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://fasb.org/us-gaap/role/ref/legacyRef -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