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Long-Term Debt | 6 Months Ended
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Jun. 30, 2018
Debt Disclosure [Abstract] |
Long-Term Debt | (2) LONG-TERM DEBT – At June 30, 2018, long-term debt was comprised of the following:
| (In thousands) |
10% Senior Secured Toggle Notes due 2020: |  |  |
Principal | $ | 697,195 |
Discount, net of amortization |  | (7,070 | )
7¾% Convertible Second Lien PIK Notes due 2019(1): |  |  |
Principal |  | 295,465 |
Accrued interest payable in kind |  | 5,693 |
Discount, net of amortization |  | (24,821 | )
9½% Convertible Second Lien PIK Notes due 2020: |  |  |
Principal |  | 195,948 |
Accrued interest payable in kind |  | 801 |
Discount, net of amortization |  | (27,077 | )
10% Senior Notes due 2020: |  |  |
Principal |  | 2,805 |
7¾% Senior Notes due 2019(1): |  |  |
Principal |  | 17,959 |
Premium, net of amortization |  | 39 |
9½% Senior Notes due 2020: |  |  |
Principal |  | 4,860 |
Discount, net of amortization |  | (56 | )
Debt issuance costs, net of amortization |  | (8,408 | )
| $ | 1,153,333 |
(1) Classified as long-term debt as the Company intends to refinance this debt with new long-term debt - See Footnote 5-Jones Contribution and Financing Plans. |
Interest on the 10% Senior Secured Toggle Notes and 10% Senior Notes due 2020 is payable on March 15 and September 15 and the notes mature on March 15, 2020. The Company has the option to pay up to $75.0 million of accrued interest on the Senior Secured Toggle Notes by issuing additional notes. To the extent that interest is paid in kind, the interest rate increases to 12¼% only for that interest payment and would result in up to an additional $91.9 million of notes outstanding. Interest on the 7¾% Convertible Second Lien PIK Notes and the 7¾% Senior Notes due 2019 is payable on April 1 and October 1 and these notes mature on April 1, 2019. Interest on the 9½% Convertible Second Lien PIK Notes and the 9½% Senior Notes due 2020 is payable on June 15 and December 15 and these notes mature on June 15, 2020. Interest on the convertible notes is only payable in kind. Each series of the convertible notes is convertible, at the option of the holder, into 81.2 shares of the Company's common stock for each $1,000 of principal amount of notes. The convertible notes will mandatorily convert into shares of common stock following a 15 consecutive trading day period during which the daily volume weighted average price of the Company's common stock is equal to or greater than $12.32 per share. The mandatory conversion provisions of the convertible notes have been temporarily suspended pending the completion of the Jones Contribution and the tender offer. $9.9 million of principal amount of the convertible notes plus related accrued interest were converted into 826,327 shares of common stock during the six months ended June 30, 2017. Comstock has a $50.0 million revolving credit facility with Bank of Montreal and Bank of America, N.A. that matures on March 4, 2019. As of June 30, 2018, there were no borrowings outstanding under the revolving credit facility. Indebtedness under the revolving credit facility is guaranteed by all of the Company's subsidiaries and is secured by substantially all of Comstock's and its subsidiaries' assets. Borrowings under the revolving credit facility bear interest, at Comstock's option, at either (1) LIBOR plus 2.5% or (2) the base rate (which is the higher of the administrative agent's prime rate, the federal funds rate plus 0.5% or 30 day LIBOR plus 1.0%) plus 1.5%. A commitment fee of 0.5% per annum is payable quarterly on the unused credit line. The revolving credit facility contains covenants that, among other things, restrict the payment of cash dividends and repurchases of common stock, limit the amount of additional debt that Comstock may incur and limit the Company's ability to make certain loans, investments and divestitures. The only financial covenants are the maintenance of a current ratio, including availability under the revolving credit facility, of at least 1.0 to 1.0 and the maintenance of an asset coverage ratio of proved developed reserves to amounts outstanding under the credit facility of at least 2.5 to 1.0. The Company was in compliance with these covenants as of June 30, 2018. All of the Company's subsidiaries guarantee the bank credit facility, the 10% Senior Secured Toggle Notes, the 7¾% Convertible Second Lien PIK Notes, the 9½% Convertible Second Lien PIK Notes, and the other outstanding senior notes. The bank credit facility, the 10% Senior Secured Toggle Notes and the convertible notes are secured by liens on substantially all of the assets of the Company and its subsidiaries. The allocation of proceeds related to the liens on the Company's assets are governed by intercreditor agreements granting priority to the bank credit facility. Proceeds from liens on the convertible notes are also subject to the priority of the 10% Senior Secured Toggle Notes.

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