|3 Months Ended|
Mar. 31, 2019
|Long-term Debt and Capital Lease Obligations [Abstract]|
4. LONG-TERM DEBT
SEACOR’s Board of Directors previously approved a securities repurchase plan that authorizes the Company to acquire SEACOR common stock, par value $0.01 per share (“Common Stock”), 3.25% Convertible Senior Notes, 3.0% Convertible Senior Notes and 2.5% Convertible Senior Notes (collectively the “Securities”) through open market purchases, privately negotiated transactions or otherwise, depending on market conditions. As of March 31, 2019, the Company’s remaining repurchase authority for the Securities was $43.5 million.
3.0% Convertible Senior Notes. During the three months ended March 31, 2019, the Company purchased $24.0 million in principal amount of its 3.0% Convertible Senior Notes for $23.2 million, resulting in debt extinguishment losses of $0.8 million included in the accompanying condensed consolidated statements of income. The outstanding principal amount of these notes was $83.3 million as of March 31, 2019.
SEACOR Revolving Credit Facility. On March 19, 2019, the Company entered into a $125.0 million credit agreement with a syndicate of lenders that matures March 19, 2024 (the “SEACOR Revolving Credit Facility”) and is secured by a pledge over all of the Company’s and certain of its subsidiaries assets, subject to certain exceptions. The SEACOR Revolving Credit Facility includes revolving loans up to $125.0 million, as such amount may increase or decrease in accordance with the terms of the Credit Agreement. The loans will bear interest at either (i) a Base Rate plus a margin ranging from 0.75% to 2.00% depending on the Company’s maximum net funded debt ratio, as determined in accordance with the SEACOR Revolving Credit Facility, or (ii) interest periods of one, two, three or six months at an annual rate equal to London Interbank Offered Rate (“LIBOR”) for the corresponding deposits of U.S. dollars, plus a margin ranging from 1.75% to 3.00% based on the Company’s maximum net funded debt ratio, as determined in accordance with the SEACOR Revolving Credit Facility. A fee of 0.5% is payable on the unused commitment quarterly. The Company incurred $2.2 million of issuance costs related to the SEACOR Revolving Credit Facility.
The SEACOR Revolving Credit Facility contains various financial and restrictive covenants including fixed charge coverage, a net funded debt ratio, a collateral coverage ratio and restrictions limiting the Company’s ability to pay dividends or make certain investments, as well as other customary covenants, representations and warranties, and events of default as defined in the agreement. As of March 31, 2019, the Company had no outstanding borrowings or issued letters of credit under the SEACOR Revolving Credit Facility and the remaining availability under this facility was $125.0 million.
SEA-Vista Credit Facility. During the three months ended March 31, 2019, SEA-Vista repaid $6.0 million on the Revolving Loan and made scheduled payments of $0.8 million on the Term A-1 Loan and $1.3 million on the Term A-2 Loan. As of March 31, 2019, SEA-Vista had $100.0 million of remaining borrowing capacity under the Revolving Loan.
Other. During the three months ended March 31, 2019, the Company made scheduled payments on other long-term debt of $0.2 million.
Letters of Credit. As of March 31, 2019, the Company had outstanding letters of credit totaling $3.0 million with various expiration dates through 2027.
Guarantees. The Company has guaranteed the payments of amounts owed under certain sale-leaseback transactions, equipment financing and multi-employer pension obligations on behalf of SEACOR Marine. As of March 31, 2019, these guarantees on behalf of SEACOR Marine totaled $36.6 million and decline as payments are made on the outstanding obligations. The Company earns a fee of 0.5% per annum on these guarantees. For the three months ended March 31, 2019, the fees earned by the Company for these guarantees were not material.
The entire disclosure for long-term debt.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef