Debt | 8. Debt Debt outstanding, excluding capital leases, consists of the following: September 30, 2017 December 31, 2016 (In thousands) Principal Balance Unamortized Discount and Debt Issuance Costs Net Carrying Amount Principal Balance Unamortized Discount and Debt Issuance Costs Net Carrying Amount 1.25% Cash Convertible Senior Notes $ 345,000 $ 39,319 $ 305,681 $ 345,000 $ 49,186 $ 295,814 Senior Secured Credit Facility 470,000 3,690 466,310 441,875 4,691 437,184 Netsmart Non-Recourse Debt: First Lien Term Loan 480,533 11,482 469,051 432,925 11,655 421,270 Second Lien Term Loan 167,000 7,789 159,211 167,000 8,901 158,099 Other debt 0 0 0 13 0 13 Total debt $ 1,462,533 $ 62,280 $ 1,400,253 $ 1,386,813 $ 74,433 $ 1,312,380 Less: Debt payable within one year - excluding Netsmart 25,000 450 24,550 15,638 480 15,158 Less: Debt payable within one year - Netsmart 4,866 2,117 2,749 4,351 1,900 2,451 Total long-term debt, less current maturities $ 1,432,667 $ 59,713 $ 1,372,954 $ 1,366,824 $ 72,053 $ 1,294,771 Interest expense consists of the following: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2017 2016 2017 2016 Interest expense $ 5,577 $ 3,896 $ 15,079 $ 11,029 Amortization of discounts and debt issuance costs 3,674 3,522 10,867 10,401 Netsmart: Interest expense (1) 12,107 11,019 34,188 19,549 Amortization of discounts and debt issuance costs 894 930 2,588 1,778 Total interest expense $ 22,252 $ 19,367 $ 62,722 $ 42,757 (1) Includes interest expense related to capital leases. Interest expense related to the 1.25% Notes, included in the table above, consists of the following: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2017 2016 2017 2016 Coupon interest at 1.25% $ 1,078 $ 1,078 $ 3,234 $ 3,234 Amortization of discounts and debt issuance costs 3,342 3,185 9,866 9,401 Total interest expense related to the 1.25% Notes $ 4,420 $ 4,263 $ 13,100 $ 12,635 Allscripts Senior Secured Credit Facility As of September 30, 2017, $225.0 million under a term loan, $245.0 million under our revolving credit facility, and $0.8 million in letters of credit were outstanding under our senior secured credit facility. As of September 30, 2017, the interest rate on the borrowings under our senior secured credit facility was LIBOR plus 2.25%, which totaled 3.49%. We were in compliance with all covenants under the senior secured credit facility agreement as of September 30, 2017. As of September 30, 2017, we had $304.2 million available, net of outstanding letters of credit, under our revolving credit facility. There can be no assurance that we will be able to draw on the full available balance of our revolving credit facility if the financial institutions that have extended such credit commitments become unwilling or unable to fund such borrowings. Refer to Note 15, “Subsequent Events,” for information regarding an additional borrowing of $185.0 million under our revolving credit facility to fund a business acquisition that occurred subsequent to September 30, 2017. As of September 30, 2017, the if-converted value of the 1.25% Notes did not exceed the 1.25% Notes’ principal amount. Netsmart Non-Recourse Debt As of September 30, 2017, $480.5 million under the Netsmart First Lien Term Loan, $167.0 million under the Netsmart Second Lien Term Loan and no amounts under the Netsmart Revolving Facility (collectively, the “Credit Agreements”) were outstanding. As of September 30, 2017, the interest rate on the borrowings under the Netsmart First Lien Term Loan was Adjusted LIBO plus 4.50%, which totaled 5.83%, the interest rate on the borrowings under the Netsmart Second Lien Term Loan was Adjusted LIBO plus 9.50%, which totaled 10.82%, and the interest rate on the borrowings under the Netsmart Revolving Facility was Adjusted LIBO plus 4.75%, which totaled 6.08%. Netsmart was in compliance with all covenants under its Credit Agreements as of September 30, 2017. As of September 30, 2017, Netsmart had $50.0 million available, with no outstanding letters of credit commitments, under the Netsmart Revolving Facility. There can be no assurance that Netsmart will be able to draw on the full available balance of the Netsmart Revolving Facility if the financial institutions that have extended such credit commitments become unwilling or unable to fund such borrowings. The following table summarizes future debt payment obligations as of September 30, 2017: (In thousands) Total Remainder of 2017 2018 2019 2020 2021 Thereafter 1.25% Cash Convertible Senior Notes (1) $ 345,000 $ 0 $ 0 $ 0 $ 345,000 $ 0 $ 0 Term Loan 225,000 6,250 28,125 40,625 150,000 0 0 Revolving Facility (2) 245,000 0 0 0 245,000 0 0 Netsmart Non-Recourse Debt (2) First Lien Term Loan 480,533 1,217 4,866 4,866 4,866 4,866 459,852 Second Lien Term Loan 167,000 0 0 0 0 0 167,000 Total debt $ 1,462,533 $ 7,467 $ 32,991 $ 45,491 $ 744,866 $ 4,866 $ 626,852 (1) (2) |