10. Line of Credit, Long-Term Debt and Capital Lease Obligations:

On October 30, 2017, the Company entered into a new credit agreement (the “New Credit Agreement”), which replaces the Company’s prior credit agreement. The New Credit Agreement provides for a $2.0 billion unsecured revolving credit facility and includes a $37.5 million sub-facility for the issuance of letters of credit. The New Credit Agreement matures on October 31, 2022 and is guaranteed by substantially all of the Company’s subsidiaries and affiliated professional associations and corporations. At the Company’s option, borrowings under the New Credit Agreement will bear interest at (i) the alternate base rate (defined as the higher of (a) the prime rate, (b) the Federal Funds Rate plus 1/2 of 1.00% and (c) LIBOR for an interest period of one month plus 1.00%) plus an applicable margin rate ranging from 0.125% to 0.750% based on the Company’s consolidated leverage ratio or (ii) the LIBOR rate plus an applicable margin rate ranging from 1.125% to 1.750% based on the Company’s consolidated leverage ratio. The New Credit Agreement also calls for other customary fees and charges, including an unused commitment fee ranging from 0.150% to 0.300% of the unused lending commitments, based on the Company’s consolidated leverage ratio.

The New Credit Agreement contains customary covenants and restrictions, including covenants that require the Company to maintain a minimum interest charge ratio, not to exceed a specified consolidated leverage ratio and to comply with laws, and restrictions on the ability of the Company to pay dividends and make certain other distributions, as specified therein. Failure to comply with these covenants would constitute an event of default under the New Credit Agreement, notwithstanding the ability of the Company to meet its debt service obligations. The New Credit Agreement also includes various customary remedies for the lenders following an event of default, including the acceleration of repayment of outstanding amounts under the New Credit Agreement.

On December 8, 2015, the Company completed a private offering of $750.0 million aggregate principal amount of 2023 Senior Notes. The Company’s obligations under the 2023 Senior Notes are guaranteed on an unsecured senior basis by the same subsidiaries and affiliated professional contractors that guarantee the Credit Agreement. Interest on the 2023 Senior Notes accrues at the rate of 5.25% per annum and is payable semi-annually in arrears on June 1 and December 1.

At any time prior to December 1, 2018, the Company may redeem all or a portion of the 2023 Senior Notes at a redemption price equal to 100% of the principal amount of the notes being redeemed plus an applicable redemption premium and accrued and unpaid interest to the redemption date. In addition, at any time prior to December 1, 2018, the Company may redeem up to 35% of the aggregate principal amount of the 2023 Senior Notes at a redemption price of 105.250% of the principal amount thereof, plus accrued and unpaid interest, if any, to the redemption date, using proceeds from one or more equity offerings. On or after December 1, 2018, the Company may redeem all or a portion of the 2023 Senior Notes, at the redemption prices of 103.938% in 2018, 102.625% in 2019, 101.313% in 2020 and 100% in 2021 and thereafter, plus accrued and unpaid interest to the redemption date.

The indenture under which the 2023 Senior Notes are issued, among other things, limits our ability to (1) incur liens and (2) enter into sale and lease-back transactions, and also limits our ability to merge or dispose of all or substantially all of our assets, in all cases, subject to a number of customary exceptions. Although we are not required to make mandatory redemption or sinking fund payments with respect to the 2023 Senior Notes, upon the occurrence of a change in control of MEDNAX, we may be required to repurchase the 2023 Senior Notes at a purchase price equal to 101% of the aggregate principal amount of the 2023 Senior Notes repurchased plus accrued and unpaid interest.

The Company presents issuance costs related to long-term debt liabilities, other than revolving credit arrangements, as a direct deduction from the carrying value of that long-term debt.

The carrying value of the Company’s long-term debt was $1.8 billion and $1.7 billion at December 31, 2017 and 2016, respectively, and consisted of the following (in thousands):


	December 31, 2017
	Principal		Unamortized Debt Issuance Costs			Total
2023 Senior Notes	$	750,000	$	(9,503	)	$	740,497
Revolving line of credit		1,110,500		(4,864	)		1,105,636

Total	$	1,860,500	$	(14,367	)	$	1,846,133


	December 31, 2016
	Principal			Unamortized Debt Issuance Costs			Total
2023 Senior Notes	$	750,000		$	(11,109	)	$	738,891
Revolving line of credit		783,500			(3,388	)		780,112
Term loan		180,000			(259	)		179,741

		1,713,500			(14,756	)		1,698,744
Less: Current portion		(20,000	)		—			(20,000	)

Long-term portion	$	1,693,500		$	(14,756	)	$	1,678,744

The Company has outstanding letters of credit which reduced the amount available under the New Credit Agreement by $0.2 million at December 31, 2017. At December 31, 2017, the Company had an available balance on its New Credit Agreement of $889.3 million.

The carrying values of the Company’s variable rate revolving line of credit approximates fair value due to the short-term nature of the interest rates. The estimated fair value of the Company’s 2023 Notes was $763.1 million and $773.4 million, at December 31, 2017 and 2016, respectively, and was estimated using trading prices as of December 31, 2017 and December 31, 2016 as Level 2 inputs to estimate fair value.

The Company’s capital lease obligations consist of the following (in thousands):


	December 31,
	2017			2016
Capital lease obligations	$	1,826		$	3,550
Less: Current portion		(1,401	)		(2,054	)

Long-term portion	$	425		$	1,496

The amounts due under the terms of the Company’s capital lease obligations at December 31, 2017 are as follows:


2018	$	1,401
2019		238
2020		113
2021		74