Long-Term Debt

Long-term debt consisted of the following:



(in thousands)	As of March 31, 2019			As of December 31, 2018

Variable rate credit facility	$	—		$	—
Senior unsecured notes	400,000			400,000
Term loan B	295,500			296,250
Total outstanding principal	695,500			696,250
Less: Debt issuance costs	(7,183		)	(7,486		)
Less: Current portion	(3,000		)	(3,000		)
Net carrying value of long-term debt	$	685,317		$	685,764
Fair value of long-term debt *	$	669,387		$	662,844

* Fair value of the Senior Notes is estimated based on quoted private market transactions and are classified as Level 1 in the fair value hierarchy. The fair value of the term loan B is based on observable estimates provided by third party financial professionals, and as such, is classified within Level 2 of the fair value hierarchy.

Senior Unsecured Notes

Our $400 million senior unsecured notes ("the Senior Notes") bear interest at a rate of 5.125% per annum and mature on May 15, 2025. Interest is payable semi-annually on May 15 and November 15 of each year. Prior to May 15, 2020, we may redeem the Senior Notes, in whole or in part, at any time, or from time to time, at a price equal to 100% of the principal amount of the Senior Notes, plus accrued and unpaid interest, if any, to the date of redemption, plus a “make-whole” premium, as set forth in the Senior Notes indenture. In addition, on or prior to May 15, 2020, we may redeem up to 40% of the Senior Notes, using proceeds of equity offerings. If we sell certain of our assets or have a change of control, the holders of the Senior Notes may require us to repurchase some or all of the notes. The Senior Notes are also guaranteed by us and the majority of our subsidiaries. The Senior Notes contain covenants with which we must comply that are typical for borrowing transactions of this nature.

We incurred approximately $7.0 million of deferred financing costs in connection with the issuance of the Senior Notes, which are being amortized over the life of the Senior Notes.

Term Loan B

Our $300 million term loan B matures in October 2024. We amended the term loan B on April 4, 2018, reducing the interest rate by 25 basis points. Following the amendment, interest is payable on term loan B at a rate based on LIBOR, plus a fixed margin of 2.00%. Interest will reduce to a rate of LIBOR plus a fixed margin of 1.75% if the company’s total net leverage, as defined by the amended agreement, is below 2.75. Term loan B requires annual principal payments of $3 million.

Our Financing Agreement also includes a provision that in certain circumstances we must use a portion of excess cash flow to repay debt. As of March 31, 2019, we were not required to make any additional principal payments for excess cash flow.

As of March 31, 2019 and December 31, 2018, the interest rate on the term loan B was 4.50% and 4.34%, respectively. The weighted-average interest rate on the term loan B was 4.50% for the three months ended March 31, 2019.

Revolving Credit Facility

We have a $150 million revolving credit facility ("Revolving Credit Facility") that expires in April 2022. Interest is payable on the Revolving Credit Facility at rates based on LIBOR, plus a margin based on our leverage ratio, ranging from 1.75% to 2.50%.

The Revolving Credit Facility includes maintaining a net leverage ratio when we have outstanding borrowings on the facility, as well as other restrictions on payments (dividends and share repurchases). Additionally, we can make acquisitions as long as the pro forma net leverage ratio is less than 5.5 to 1.0.

We granted the lenders pledges of our equity interests in our subsidiaries and security interests in substantially all other personal property including cash, accounts receivables, and equipment.

Commitment fees of 0.30% to 0.50% per annum, based on our leverage ratio, of the total unused commitment are payable under the Revolving Credit Facility.

As of March 31, 2019 and December 31, 2018 we had outstanding letters of credit totaling $6.0 million and $0.1 million, respectively.