Note 9 — Long-Term Debt

The following table summarizes the Company’s long-term debt:


	September 30,			December 31,
	2016			2015
8% Senior Notes, due January 30, 2020	$	40,250		$	40,250
3.875% Convertible Senior Notes, due March 15, 2019		89,990			103,000
4% Promissory note, due through February 1, 2031		8,936			—
3.75% Promissory note, due through September 1, 2036		9,000			—

Total principal amount		148,176			143,250
Less: unamortized discount and issuance costs		(10,004	)		(13,821	)

Total long-term debt	$	138,172		$	129,429

As of September 30, 2016, future maturities of long-term debt are as follows:


Due in 12 months following September 30,
2016	$	776
2017		807
2018		90,829
2019		41,122
2020		906
Thereafter		13,736

Total	$	148,176

Information with respect to interest expense is as follows:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2016		2015		2016		2015
Interest Expense:
Contractual interest	$	1,810	$	1,802	$	5,466	$	5,408
Non-cash expense*		862		896		2,646		2,630

	$	2,672	$	2,698	$	8,112	$	8,038

*	Includes amortization of debt discount and issuance costs.

As of September 30, 2016, the remaining amortization period of the debt discount was 2.5 years.

3.75% Promissory Note

In connection with the business acquisition described in Note 5 — Business Acquisition, Sorrento PBX, LLC entered into a 20-year secured loan agreement for gross proceeds of $9,000. The loan proceeds were used to finance the acquisition. The loan bears a fixed annual interest rate of 3.75% and is collateralized by the acquired property and the assignment of associated lease agreements. Approximately $53 of principal and interest is payable in 240 monthly installments beginning October 1, 2016. The promissory note may be repaid in full after September 1, 2017 as long as the Company provides at least 60 days’ written notice and pays a prepayment premium as specified in the loan agreement. In addition, the lender may require full payment of the outstanding principal and unpaid interest on September 1, 2031 provided a written notice of its intention to call the note is given at least six months in advance.

4% Promissory Note

On January 14, 2016, HCPCI Holdings, LLC, a subsidiary of the Company, entered into a 15-year secured loan agreement for proceeds of $9,200. The loan is collateralized by the Company’s Tampa, Florida real estate, which is owned by HCPCI Holdings, and the lease agreements associated with this property. The loan bears a fixed annual interest rate of 4%. Approximately $68 of principal and interest is payable in 180 monthly installments beginning March 1, 2016. The promissory note may be repaid in full after February 1, 2017 as long as the Company provides at least 60 days’ written notice and pays a prepayment premium as specified in the loan agreement. The proceeds were used for real estate development projects or other general business purposes.

3.875% Convertible Senior Notes

Conversion Rate

Since January 2015, the Company’s cash dividends on common stock have exceeded $0.275 per share, resulting in adjustments to the conversion rate. As of September 30, 2016, each $1 of the Company’s convertible notes would have been convertible into 16.0833 shares of common stock, which was the equivalent of approximately $62.18 per share.

Repurchases of Convertible Senior Notes

During the first quarter of 2016, the Company repurchased an aggregate of $13,010 in principal of its 3.875% convertible senior notes in privately negotiated transactions for cash in the amount of $11,347, inclusive of $81 in commissions. As a result, the Company recognized a $153 gain on extinguishment net of $1,591 in unamortized debt discount and issuance costs and commissions associated with the notes that were repurchased during the first quarter of 2016.