Debt (Tables)

12 Months Ended

Dec. 31, 2016

The components of the Company’s consolidated debt and capital lease obligations were as follows (in thousands):



	December 31, 2016			December 31, 2015
Encore revolving credit facility	$	578,000		$	627,000
Encore term loan facility	164,615			143,078
Encore senior secured notes	11,320			28,750
Encore convertible notes	448,500			448,500
Less: Debt discount	(31,968		)	(41,867		)
Cabot senior secured notes	1,280,241			1,360,000
Add: Debt premium	17,686			53,440
Less: Debt discount	(2,200		)	(3,184		)
Cabot senior revolving credit facility	33,218			54,089
Preferred equity certificates	205,975			221,516
Other credit facilities	74,551			49,895
Other	62,608			33,447
Capital lease obligations	5,091			11,054
	2,847,637			2,985,718
Less: debt issuance costs, net of amortization	(41,654		)	(41,655		)
Total	$	2,805,983		$	2,944,063

Convertible Debt, Features and Hedging

Prior to the close of business on the business day immediately preceding their respective conversion date (listed below), holders may convert their Convertible Notes under certain circumstances set forth in the applicable Convertible Notes indentures. On or after their respective conversion dates until the close of business on the scheduled trading day immediately preceding their respective maturity date, holders may convert their Convertible Notes at any time. Certain key terms related to the convertible features for each of the Convertible Notes as of year ended December 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

Balances of the 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		%

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



	December 31, 2016			December 31, 2015
Liability component—principal amount	$	448,500		$	448,500
Unamortized debt discount	(31,968		)	(41,867		)
Liability component—net carrying amount	$	416,532		$	406,633
Equity component	$	61,314		$	58,184

Summary of Debt Including Capital Lease Obligations Maturities

The aggregate amounts of the Company’s debt, including PECs, accrued interests on PECs, and capital lease obligations, maturing in each of the next five years and thereafter are as follows (in thousands):



2017	$	224,394
2018	18,760
2019	306,032
2020	887,084
2021	775,821
Thereafter	652,028
Total	$	2,864,119

Cabot Senior Secured Notes [Member]

Debt Instrument [Line Items]

Interest Expense

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



	Year ended December 31,
	2016			2015
Interest expense—stated coupon rate	$	105,606		$	98,988
Interest income—accretion of debt premium	(8,951		)	(10,747		)
Interest expense—amortization of debt discount	620			75
Total interest expense—Cabot senior secured notes	$	97,275		$	88,316

Convertible Notes [Member]

Debt Instrument [Line Items]

Interest Expense

The debt discount is being amortized into interest expense over the remaining life of the convertible notes using the effective interest rates. Interest expense related to the convertible notes was as follows (in thousands):



	Year ended December 31,
	2016		2015
Interest expense—stated coupon rate	$	13,263	$	13,245
Interest expense—amortization of debt discount	9,900		9,335
Total interest expense—convertible notes	$	23,163	$	22,580