Debt and Financing Obligation | 6. Debt and Financing Obligation Total debt and financing obligation, including the current portion of the financing obligation, consisted of the following: September 30, 2021 December 31, 2020 (Dollars in millions) 4.875 percent senior notes, due 2029 ("2029 Senior Notes") $ 500.0 $ — 7.500 percent senior notes, due 2025 ("2025 Senior Notes") — 587.3 $350.0 million revolving credit facility, due 2026 ("Revolving Facility") 102.0 88.3 5.346 percent financing obligation, due 2024 12.7 14.9 Total borrowings 614.7 690.5 Original issue discount — (3.3) Debt issuance costs (13.8) (10.3) Total debt and financing obligation $ 600.9 $ 676.9 Less: current portion of financing obligation 3.1 3.0 Total long-term debt and financing obligation $ 597.8 $ 673.9 Issuance of 2029 Senior Notes On June 22, 2021, the Company issued $500.0 million aggregate principal amount of senior secured notes with an interest rate of 4.875 percent due in June 2029. The Company received proceeds of $500.0 million from the issuance and incurred debt issuance costs related to this transaction of $10.4 million, which are included in long-term debt and financing obligation, net of amortization, on the Consolidated Balance Sheets as of September 30, 2021. The 2029 Senior Notes are the senior secured obligations of the Company. Interest on the 2029 Senior Notes is payable semi-annually in cash in arrears on June 30 and December 30 of each year, commencing on December 30, 2021. The Company may redeem some or all of the 2029 Senior Notes at its option, in whole or part, at the dates and amounts set forth in the applicable indenture. The applicable indenture for the 2029 Senior Notes contains covenants that, among other things, limit the Company's ability and, in certain circumstances, the ability of certain of the Company’s subsidiaries to (i) borrow money, (ii) create liens on assets, (iii) pay dividends or make other distributions on or repurchase or redeem the Company's capital stock, (iv) prepay, redeem or repurchase certain debt, (v) make loans and investments, (vi) sell assets, (vii) incur liens, (viii) enter into transactions with affiliates, (ix) enter into agreements restricting the ability of subsidiaries to pay dividends and (x) consolidate, merge or sell all or substantially all of the Company's assets. Purchase and Redemption of 2025 Senior Notes During the second quarter of 2021, pursuant to the applicable indenture with The Bank of New York Mellon Corporation as trustee ("Trustee"), the Trustee delivered redemption notices to holders of the 2025 Senior Notes. The principal amount of the 2025 Senior Notes redeemed was $587.3 million, which represented all of the outstanding principal of the 2025 Senior Notes at 100 percent. On June 22, 2021, the proceeds required for redemption, including the applicable premium and accrued interest totaling $612.1 million, were irrevocably deposited with the Trustee, at which time the 2025 Senior Notes were fully satisfied and discharged, and held by the Trustee until the date of redemption, July 8, 2021. As a result, during the nine months ended September 30, 2021, the Company recorded a loss on extinguishment of debt on the Consolidated Statement of Operations of $31.1 million, which consisted of the premium paid of $22.0 million and the write-off of unamortized debt issuance costs of $6.1 million and the remaining original issue discount of $3.0 million. Revolving Facility On June 22, 2021, in conjunction with the issuance of the 2029 Senior Notes, the Company amended and extended the maturity of its Revolving Facility from August 2024 to June 2026 and reduced its capacity by $50.0 million to $350.0 million, resulting in additional debt issuance costs of $1.6 million, which are included in long-term debt and financing obligation, net of amortization, on the Consolidated Balance Sheets as of September 30, 2021. Additionally, the Company recorded a loss on extinguishment of debt on the Consolidated Statement of Operations of $0.8 million, representing the write-off of unamortized debt issuance costs, during the nine months ended September 30, 2021. As of September 30, 2021, the Revolving Facility had letters of credit outstanding o f $12.1 million and a $102.0 million outstanding balance, leaving $235.9 million available. Additionally, the Company has certain letters of credit totaling $11.5 million, which do not reduce the Revolving Facility's available balance. Covenants Under the terms of the Revolving Facility, the Company is subject to a maximum consolidated net leverage ratio of 4.50:1.00 and a minimum consolidated interest coverage ratio of 2.50:1.00. The Company's debt agreements contain other covenants and events of default that are customary for similar agreements and may limit our ability to take various actions including our ability to pay a dividend or repurchase our stock. If we fail to perform our obligations under these and other covenants, the lenders' credit commitment could be terminated and any outstanding borrowings, together with accrued interest, under the Revolving Facility could be declared immediately due and payable. The Company has a cross default provision that applies to our indebtedness having a principal amount in excess of $35.0 million. As of September 30, 2021, the Company was in compliance with all applicable debt covenants. We do not anticipate a violation of these covenants nor do we anticipate that any of these covenants will restrict our operations or our ability to obtain additional financing. Maturities As of September 30, 2021, the combined aggregate amount of maturities for long-term borrowings for each of the next five years is as follows: (Dollars in millions) 2021 $ 0.8 2022 3.2 2023 3.3 2024 5.4 2025 — 2026-Thereafter 602.0 Total $ 614.7 |