Interest Expense

Senior Notes due 2025

On March 27, 2015, the Company issued $500.0 million principal amount of 5.25% senior unsecured notes due April 1, 2025. The Company intends to use the proceeds for general corporate purposes, including, but not limited to, the repurchase of shares of its common stock under its share buyback program. In connection with the offering the Company incurred $6.5 million of issuance costs which are presented as a reduction of the Senior Notes liability subsequent to the adoption of ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs. The issuance costs will be amortized to Interest expense over the 10 year term of the notes. The Company will pay interest on the notes semi-annually on April 1 and October 1, commencing on October 1, 2015.

The Company may redeem the 2025 Senior Notes, in whole or in part, at any time at the Company’s option at specified redemption prices. The Company entered into a registration rights agreement (the “Registration Rights Agreement”) with the initial purchasers that provided holders of the notes certain rights relating to registration of the notes under the Securities Act of 1933, as amended. In July 2015, the Company completed an exchange of $499.8 million of its outstanding 2025 Senior Notes, which were not registered under the Securities Act, for an equal principal amount of its 2025 Senior Notes, which have been registered under the Securities Act on an effective exchange offer registration statement filed by the Company pursuant to the Registration Rights Agreement.

2015 Credit Facility

On March 31, 2015, the Company entered into a new credit agreement for a $200.0 million committed senior unsecured revolving credit facility (the “2015 Credit Facility”). The 2015 Credit Facility replaces the Company’s 2011 Credit Facility which was set to expire in November 2016. The terms of the 2015 Credit Facility are substantially similar to the terms of the previous 2011 Credit Facility. The 2015 Credit Facility includes financial covenants requiring that the Company’s interest coverage ratio not be less than 3.0 to 1.0 for any period of four consecutive quarters and the Company’s leverage ratio not exceed 2.5 to 1.0. As of June 30, 2015, there were no borrowings outstanding under the facility and the Company was in compliance with the financial covenants. The 2015 Credit Facility expires on April 1, 2020 at which time any outstanding borrowings are due.

The following table presents the components of the Company’s interest expense:



	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
	(In thousands)
Contractual interest on the Subordinated Convertible Debentures	$	10,156		$	10,156		$	20,312		$	20,312
Contractual interest on 2023 Senior Notes	8,672			8,672			17,344			17,344
Contractual interest on 2025 Senior Notes	6,562			—			6,927			—
Amortization of debt discount on the Subordinated Convertible Debentures	2,527			2,329			5,004			4,611
Credit facility fees and amortization of debt issuance costs	735			494			1,239			985
Interest capitalized to Property and equipment, net	(149		)	(161		)	(306		)	(377		)
Total interest expense	$	28,503		$	21,490		$	50,520		$	42,875