Debt (Tables)

9 Months Ended

Sep. 30, 2015

The Company is in compliance with all covenants under its financing arrangements. The components of the Company’s consolidated debt and capital lease obligations were as follows (in thousands):



	September 30, 2015			December 31, 2014
Encore revolving credit facility	$	576,000		$	505,000
Encore term loan facility	140,141			146,023
Encore senior secured notes	32,500			43,750
Encore convertible notes	448,500			448,500
Less: Debt discount	(44,255		)	(51,202		)
Propel facilities	154,460			84,229
Propel securitized notes	71,923			104,247
Cabot senior secured notes	1,045,143			1,076,952
Add: Debt premium	57,387			67,259
Cabot senior revolving credit facility	242,751			86,368
Cabot senior secured bridge facility	136,323			—
Preferred equity certificates	220,304			208,312
Capital lease obligations	10,574			15,331
Other	24,693			38,785
	$	3,116,444		$	2,773,554

Schedule of Convertible Notes - Interest Rates, Hedging, Liability and Equity Components

The balances of the liability and equity components of all of the Convertible Notes outstanding were as follows (in thousands):



	September 30, 2015			December 31, 2014
Liability component—principal amount	$	448,500		$	448,500
Unamortized debt discount	(44,255		)	(51,202		)
Liability component—net carrying amount	$	404,245		$	397,298
Equity component	$	57,428		$	55,236

The debt and equity components, the issuance costs related to the equity component, the stated interest rate, and the effective interest rate for each of the Convertible Notes are listed below (in thousands, except percentages):



	2017 Convertible Notes			2020 Convertible Notes			2021 Convertible Notes
Debt component	$	100,298		$	140,271		$	143,604
Equity component	$	14,702		$	32,229		$	17,396
Equity issuance cost	$	788		$	1,113		$	575
Stated interest rate	3.000		%	3.000		%	2.875		%
Effective interest rate	6.000		%	6.350		%	4.700		%

Certain key terms related to the convertible features for each of the Convertible Notes as of September 30, 2015 are listed below.



	2017 Convertible Notes		2020 Convertible Notes		2021 Convertible Notes
Initial conversion price	$	31.56	$	45.72	$	59.39
Closing stock price at date of issuance	$	25.66	$	33.35	$	47.51
Closing stock price date	November 27, 2012		June 24, 2013		March 5, 2014
Conversion rate (shares per $1,000 principal amount)	31.6832		21.8718		16.8386
Conversion date⁽¹⁾	May 27, 2017		January 1, 2020		September 15, 2020

_______________________


(1)	2017 Convertible Notes became convertible on January 2, 2014, as certain early conversion events were satisfied. Refer to “Conversion and Earnings Per Share Impact” section below for further details.

The details of the hedge program for each of the Convertible Notes are listed below (in thousands, except conversion price):



	2017 Convertible Notes		2020 Convertible Notes		2021 Convertible Notes
Cost of the hedge transaction(s)	$	50,595	$	18,113	$	19,545
Initial conversion price	$	31.56	$	45.72	$	59.39
Effective conversion price	$	60.00	$	61.55	$	83.14

Cabot and Marlin Acquisitions [Member]

Debt Instrument [Line Items]

Interest Expense

Interest expense related to the Cabot Notes and Marlin Bonds was as follows (in thousands):



	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Interest expense—stated coupon rate	$	24,394		$	26,239		$	72,395		$	72,099
Interest income—accretion of debt premium	(2,771		)	(2,760		)	(7,978		)	(7,565		)
Total interest expense—Cabot Notes and Marlin Bonds	$	21,623		$	23,479		$	64,417		$	64,534

Convertible Notes [Member]

Debt Instrument [Line Items]

Interest Expense

Interest expense related to the convertible notes was as follows (in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Interest expense—stated coupon rate	$	3,315	$	3,316	$	9,915	$	9,080
Interest expense—amortization of debt discount	2,359		2,228		6,947		6,164
Total interest expense—convertible notes	$	5,674	$	5,544	$	16,862	$	15,244