Long-Term Debt

The Company’s long-term debt consists of the following:



	June 30, 2016			December 31, 2015
	(In thousands)
Senior secured revolving line of credit	$	35,000		$	138,000
Senior unsecured notes
7.25% senior unsecured notes due February 1, 2019	399,000			400,000
6.5% senior unsecured notes due November 1, 2021	397,697			400,000
6.875% senior unsecured notes due March 15, 2022	940,500			1,000,000
6.875% senior unsecured notes due January 15, 2023	386,200			400,000
Less: deferred financing costs related to senior unsecured notes	(31,036		)	(35,416		)
Total long-term debt	$	2,127,361		$	2,302,584

Senior secured revolving line of credit. The Company has a senior secured revolving line of credit (the “Credit Facility”) of $2,500.0 million as of June 30, 2016, which has a maturity date of April 13, 2020. The Credit Facility is restricted to a borrowing base, which is reserve-based and subject to semi-annual redeterminations on April 1 and October 1 of each year. On February 23, 2016, the lenders under the Credit Facility completed their regular semi-annual redetermination of the borrowing base scheduled for April 1, 2016, resulting in a decrease in the borrowing base and aggregate elected commitment from $1,525.0 million to $1,150.0 million.

As of June 30, 2016, the Company had $35.0 million of LIBOR loans and $14.2 million of outstanding letters of credit issued under the Credit Facility, resulting in an unused borrowing base committed capacity of $1,100.8 million. The weighted average interest rate on borrowings outstanding under the Credit Facility was 2.0% and 1.9% as of June 30, 2016 and December 31, 2015, respectively. On a quarterly basis, the Company also pays a 0.375% (as of June 30, 2016) annualized commitment fee on the average amount of borrowing base capacity not utilized during the quarter and fees calculated on the average amount of letter of credit balances outstanding during the quarter.

The Company was in compliance with the financial covenants of the Credit Facility as of June 30, 2016.

Senior unsecured notes. At June 30, 2016, the Company had $2,123.4 million principal amount of senior unsecured notes outstanding with maturities ranging from February 2019 to January 2023 and coupons ranging from 6.5% to 7.25% (the “Notes”). Interest on the Notes is payable semi-annually in arrears. The Notes are guaranteed on a senior unsecured basis by the Company, along with its material subsidiaries (the “Guarantors”), which are 100% owned by the Company. These guarantees are full and unconditional and joint and several among the Guarantors, subject to certain customary release provisions. The indentures governing the Notes contain customary events of default as well as covenants that place restrictions on the Company and certain of its subsidiaries.

Prior to certain dates, the Company has certain options to redeem up to 35% of the Notes at a certain redemption price based on a percentage of the principal amount, plus accrued and unpaid interest to the redemption date, with the proceeds of certain equity offerings so long as the redemption occurs within 180 days of completing such equity offering and at least 65% of the aggregate principal amount of the Notes remains outstanding after such redemption. Prior to certain dates, the Company has the option to redeem some or all of the Notes for cash at certain redemption prices equal to a certain percentage of their principal amount plus an applicable make-whole premium and accrued and unpaid interest to the redemption date. The Company estimates that the fair value of these redemption options is immaterial at June 30, 2016 and December 31, 2015.

During the six months ended June 30, 2016, the Company repurchased an aggregate principal amount of $76.6 million of its outstanding Notes, consisting of $1.0 million principal amount of its 7.25% senior unsecured notes due February 2019, $2.3 million principal amount of its 6.5% senior unsecured notes due November 2021, $59.5 million principal amount of its 6.875% senior unsecured notes due March 2022 and $13.8 million principal amount of its 6.875% senior unsecured notes due January 2023, for an aggregate cost of $56.9 million, including accrued interest and fees. For the three and six months ended June 30, 2016, the Company recognized pre-tax gains of $11.6 million and $18.7 million, respectively, related to these repurchases, which were net of unamortized deferred financing costs write-offs of $0.5 million and $1.0 million, respectively, and are reflected in gain on extinguishment of debt in the Company’s Condensed Consolidated Statement of Operations.

Deferred financing costs. At June 30, 2016, the Company had $36.7 million of deferred financing costs related to the Notes and the Credit Facility. Deferred financing costs of $31.0 million related to the Notes are included in long-term debt on the Company’s Condensed Consolidated Balance Sheet at June 30, 2016, and are being amortized over the respective terms of the Notes. Deferred financing costs of $5.7 million related to the Credit Facility are included in other assets on the Company’s Condensed Consolidated Balance Sheet at June 30, 2016, and are being amortized over the term of the Credit Facility. Amortization of deferred financing costs recorded was $2.0 million and $4.1 million for the three and six months ended June 30, 2016, respectively, and $1.9 million and $3.5 million for the three and six months ended June 30, 2015, respectively. These costs are included in interest expense on the Company’s Condensed Consolidated Statement of Operations. For the six months ended June 30, 2016 and 2015, the Company’s interest expense also included $1.8 million and $0.5 million charges for unamortized deferred financing costs related to the Credit Facility, which were written off in proportion to the decreases in the borrowing base. No deferred financing costs related to the Credit Facility were written off during the three months ended June 30, 2016. Aforementioned, the gain on extinguishment of debt in the Company’s Condensed Consolidated Statement of Operations included unamortized deferred financing costs write-offs of $0.5 million and $1.0 million related to the repurchased Notes for the three and six months ended June 30, 2016, respectively. No deferred financing costs related to the Notes were written off during the three and six months ended June 30, 2015.