Debt, Net (Tables)

6 Months Ended

Jun. 30, 2018

Schedule of Consolidated Debt and Capital Lease Obligations

The Company is in compliance with all covenants under its financing arrangements as of June 30, 2018. The components of the Company’s consolidated debt and capital lease obligations were as follows (in thousands):



	June 30, 2018			December 31, 2017
Encore revolving credit facility	$	376,000		$	328,961
Encore term loan facility	200,799			181,687
Encore senior secured notes	325,000			326,029
Encore convertible notes	483,500			483,500
Less: debt discount	(27,828		)	(32,720		)
Cabot senior secured notes	1,188,074			1,216,485
Less: debt discount	(1,877		)	(1,927		)
Cabot senior revolving credit facility	243,900			179,008
Cabot securitisation senior facility	383,003			391,790
Preferred equity certificates	262,379			253,324
Other credit facilities	59,241			68,001
Other	71,212			92,792
Capital lease obligations	7,630			6,069
	3,571,033			3,492,999
Less: debt issuance costs, net of amortization	(40,618		)	(46,123		)
Total	$	3,530,415		$	3,446,876

Schedule of Hedge Program for Convertible Notes

Certain key terms related to the convertible features for each of the Convertible Notes as of June 30, 2018 are listed below.



	2020 Convertible Notes		2021 Convertible Notes		2022 Convertible Notes
Initial conversion price	$	45.72	$	59.39	$	45.57
Closing stock price at date of issuance	$	33.35	$	47.51	$	35.05
Closing stock price date	June 24, 2013		March 5, 2014		February 27, 2017
Conversion rate (shares per $1,000 principal amount)	21.8718		16.8386		21.9467
Conversion date	January 1, 2020		September 15, 2020		September 15, 2021

The details of the hedge program for each of the Convertible Notes are listed below (in thousands, except conversion price):



	2020 Convertible Notes		2021 Convertible Notes
Cost of the hedge transaction(s)	$	18,113	$	19,545
Initial conversion price	$	45.72	$	59.39
Effective conversion price	$	61.55	$	83.14

Schedule of Balances of the Liability and Equity Components

The debt and equity components, the issuance costs related to the equity component, the stated interest rate, and the effective interest rate for each of the Convertible Notes are listed below (in thousands, except percentages):



	2020 Convertible Notes			2021 Convertible Notes			2022 Convertible Notes
Debt component	$	140,247		$	143,645		$	137,266
Equity component	$	32,253		$	17,355		$	12,734
Equity issuance cost	$	1,106		$	581		$	398
Stated interest rate	3.000		%	2.875		%	3.250		%
Effective interest rate	6.350		%	4.700		%	5.200		%

The balances of the liability and equity components of all of the Convertible Notes outstanding were as follows (in thousands):



	June 30, 2018			December 31, 2017
Liability component—principal amount	$	483,500		$	483,500
Unamortized debt discount	(27,828		)	(32,720		)
Liability component—net carrying amount	$	455,672		$	450,780
Equity component	$	62,696		$	62,696

Schedule of Interest Expense

The debt discount is being amortized into interest expense over the remaining life of the convertible notes using the effective interest rates. Interest expense related to the convertible notes was as follows (in thousands):



	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Interest expense—stated coupon rate	$	3,651	$	4,064	$	7,293	$	7,588
Interest expense—amortization of debt discount	2,464		2,415		4,892		4,901
Total interest expense—convertible notes	$	6,115	$	6,479	$	12,185	$	12,489

Interest expense related to the Cabot senior secured notes was as follows (in thousands):



	Three Months Ended June 30,					Six Months Ended June 30,
	2018		2017			2018		2017
Interest expense—stated coupon rate	$	21,239	$	25,011		$	42,839	$	48,993
Interest income—accretion of debt premium	—		(1,081		)	—		(2,097		)
Interest expense—amortization of debt discount	119		116			3		226
Total interest expense—Cabot senior secured notes	$	21,358	$	24,046		$	42,842	$	47,122