Debt (Tables)

3 Months Ended

Mar. 31, 2016

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):



	March 31, 2016			December 31, 2015
Encore revolving credit facility	$	497,000		$	627,000
Encore term loan facility	140,063			143,078
Encore senior secured notes	25,000			28,750
Encore convertible notes	448,500			448,500
Less: Debt discount	(39,440		)	(41,867		)
Cabot senior secured notes	1,345,014			1,360,000
Add: Debt premium	49,220			53,440
Less: Debt discount	(3,045		)	(3,184		)
Cabot senior revolving credit facility	144,499			54,089
Preferred equity certificates	221,283			221,516
Capital lease obligations	8,374			11,054
Other	95,346			83,342
	2,931,814			2,985,718
Less: debt issuance costs, net of amortization	(38,380		)	(41,655		)
Total	$	2,893,434		$	2,944,063

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

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		$	140,247		$	143,645
Equity component	$	14,702		$	32,253		$	17,355
Equity issuance cost	$	788		$	1,106		$	581
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 March 31, 2016 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)	The 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

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



	March 31, 2016			December 31, 2015
Liability component—principal amount	$	448,500		$	448,500
Unamortized debt discount	(39,440		)	(41,867		)
Liability component—net carrying amount	$	409,060		$	406,633
Equity component	$	58,950		$	58,184

Interest Expense

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



	Three Months Ended March 31,
	2016			2015
Interest expense—stated coupon rate	$	27,643		$	23,850
Interest income—accretion of debt premium	(2,618		)	(2,547		)
Interest expense—amortization of debt discount	127			—
Total interest expense—Cabot senior secured notes	$	25,152		$	21,303

Convertible Notes [Member]

Debt Instrument [Line Items]

Interest Expense

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



	Three Months Ended March 31,
	2016		2015
Interest expense—stated coupon rate	$	3,311	$	3,292
Interest expense—amortization of debt discount	2,427		2,278
Total interest expense—convertible notes	$	5,738	$	5,570