Quarterly report pursuant to Section 13 or 15(d)

Long-Term Debt

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Long-Term Debt
9 Months Ended
Sep. 30, 2019
Long-term Debt and Capital Lease Obligations [Abstract]  
Debt Disclosure
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”), 3.0% Convertible Senior Notes, 2.5% Convertible Senior Notes and 3.25% Convertible Senior Notes (collectively the “Securities”) through open market purchases, privately negotiated transactions or otherwise, depending on market conditions. On June 5, 2019, SEACOR’s Board of Directors increased the Company’s repurchase authority for the Securities to $150.0 million. As of September 30, 2019, the Company’s remaining repurchase authority for the Securities was $131.7 million.
3.0% Convertible Senior Notes. During the nine months ended September 30, 2019, the Company purchased $55.4 million in principal amount of its 3.0% Convertible Senior Notes for total consideration of $54.4 million. Consideration of $54.2 million was allocated to the debt resulting in debt extinguishment losses of $2.1 million included in the accompanying condensed consolidated statements of income. Consideration of $0.1 million was allocated to the conversion option embedded in the 3.0% Convertible Senior Notes and is included in the accompanying condensed consolidated statements of changes in equity. The outstanding principal amount of these notes was $51.9 million as of September 30, 2019. Subsequent to September 30, 2019. the Company purchased an additional $1.8 million in principal amount of its Convertible Senior Notes for total consideration of $1.8 million.
SEACOR Revolving Credit Facility. On March 19, 2019, the Company entered into a $125.0 million credit agreement with a syndicate of lenders (the “SEACOR Revolving Credit Facility”) that matures March 19, 2024 and is secured by a pledge over all of SEACOR’s assets and certain of its subsidiaries’ assets, subject to certain exceptions. The SEACOR Revolving Credit Facility permits the Company to borrow up to $125.0 million, from time to time as revolving loans, as such amounts 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 ratio, 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 set forth in the agreement. During the nine months ended September 30, 2019, the Company drew $25.0 million
under the SEACOR Revolving Credit Facility. As of September 30, 2019, the Company had $100.0 million of remaining borrowing capacity. Subsequent to September 30, 2019, the Company repaid the outstanding balance of $25.0 million.
SEA-Vista Credit Facility. During the nine months ended September 30, 2019, SEA-Vista repaid $6.0 million on its Revolving Loan and made scheduled payments of $2.2 million on its Term A-1 Loan and $3.8 million on its Term A-2 Loan. As of September 30, 2019, SEA-Vista had $100.0 million of remaining borrowing capacity under the Revolving Loan.
Other. During the nine months ended September 30, 2019, the Company made scheduled payments on other long-term debt of $0.5 million.
Letters of Credit. As of September 30, 2019, the Company had outstanding letters of credit totaling $1.3 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 September 30, 2019, these guarantees on behalf of SEACOR Marine totaled $27.0 million and decline as payments are made on the outstanding obligations. The Company earns a fee of 0.5% per annum on these guarantees. During the nine months ended September 30, 2019, the Company earned $0.1 million in guarantee fees from SEACOR Marine