Debt, Net (Tables)

3 Months Ended

Mar. 31, 2019

Schedule of Consolidated Debt and Capital Lease Obligations

The Company is in compliance with all covenants under its financing arrangements as of March 31, 2019. The components of the Company’s consolidated debt and capital lease obligations were as follows (in thousands):



	March 31, 2019			December 31, 2018
Encore revolving credit facility	$	500,000		$	429,000
Encore term loan facility	183,142			195,056
Encore senior secured notes	325,000			325,000
Encore convertible notes and exchangeable notes	656,000			656,000
Less: debt discount	(33,239		)	(36,361		)
Cabot senior secured notes	1,120,657			1,111,399
Less: debt discount	(1,392		)	(1,477		)
Cabot senior revolving credit facility	319,760			298,005
Cabot securitisation senior facilities	456,204			445,837
Other credit facilities	43,794			43,354
Other	61,583			64,566
Finance lease liabilities	5,904			7,563
	3,637,413			3,537,942
Less: debt issuance costs, net of amortization	(44,507		)	(47,309		)
Total	$	3,592,906		$	3,490,633

Schedule of Hedge Program for Convertible Notes

Certain key terms related to the convertible and exchangeable features as of March 31, 2019 are listed below.



	2020 Convertible Notes		2021 Convertible Notes		2022 Convertible Notes		2023 Exchangeable Notes
Initial conversion or exchange price	$	45.72	$	59.39	$	45.57	$	44.62
Closing stock price at date of issuance	$	33.35	$	47.51	$	35.05	$	36.45
Closing stock price date	June 24, 2013		March 5, 2014		February 27, 2017		July 20, 2018
Conversion or exchange rate (shares per $1,000 principal amount)	21.8718		16.8386		21.9467		22.4090
Conversion or exchange date	January 1, 2020		September 15, 2020		September 15, 2021		March 1, 2023

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



	2020 Convertible Notes		2021 Convertible Notes		2023 Exchangeable Notes
Cost of the hedge transaction(s)	$	18,113	$	19,545	$	17,785
Initial conversion or exchange price	$	45.72	$	59.39	$	44.62
Effective conversion or exchange price	$	61.55	$	83.14	$	62.48

Schedule of 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 and Exchangeable Notes are listed below (in thousands, except percentages):



	2020 Convertible Notes			2021 Convertible Notes			2022 Convertible Notes			2023 Exchangeable Notes
Debt component	$	140,247		$	143,645		$	137,266		$	157,971
Equity component	$	32,253		$	17,355		$	12,734		$	14,009
Equity issuance cost	$	1,106		$	581		$	398		$	—
Stated interest rate	3.000		%	2.875		%	3.250		%	4.500		%
Effective interest rate	6.350		%	4.700		%	5.200		%	6.500		%

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



	March 31, 2019			December 31, 2018
Liability component—principal amount	$	656,000		$	656,000
Unamortized debt discount	(33,239		)	(36,361		)
Liability component—net carrying amount	$	622,761		$	619,639
Equity component	$	76,351		$	76,351

Schedule of Interest Expense

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



	Three Months Ended March 31,
	2019		2018
Interest expense—stated coupon rate	$	5,337	$	3,642
Interest expense—amortization of debt discount	3,121		2,428
Total interest expense—Convertible Notes and Exchangeable Notes	$	8,458	$	6,070

Interest expense related to the Cabot senior secured notes was as follows (in thousands):



	Three Months Ended March 31,
	2019		2018
Interest expense—stated coupon rate	$	23,655	$	21,600
Interest expense—amortization of debt discount	119		(116		)
Total interest expense—Cabot senior secured notes	$	23,774	$	21,484