Long-Term Debt and Interest Expense

Long-term debt consisted of the following (in thousands):



	September 30, 2017			December 31, 2016
Credit facilities:
Term Loan	$	162,938		$	164,175
New ABL Facility	64,000			—
Capital leases and other notes	106,674			78,046
Unamortized discounts, premiums, and deferred debt costs	(13,433		)	(19,001		)
Total principal amount of debt instruments, net	320,179			223,220
Less current portion	50,849			38,468
Long-term debt	$	269,330		$	184,752

Debt Discounts

The following discounts on debt represent the unamortized discount to fair value of our Amended and Restated Term Loan Credit Agreement (the "Term Loan Agreement") and the short-term and long-term portions of the fair value discount of capital leases (in thousands):



	September 30, 2017		December 31, 2016
Unamortized discount on Term Loan	$	9,758	$	11,401
Unamortized discount on Capital Leases - short-term	1,657		1,600
Unamortized discount on Capital Leases - long-term	1,936		6,000
Unamortized deferred debt costs	82		—
	$	13,433	$	19,001

On September 29, 2017, Basic terminated its $75 million credit facility and entered into the New ABL Facility pursuant to (i) a Receivables Transfer Agreement (the “Transfer Agreement”) entered into by and among Basic Energy Services, L.P. (“BES LP”), as the initial originator and Basic Energy Receivables, LLC (the “SPE”), as the transferee and (ii) the Credit Agreement.

Under the Transfer Agreement, BES LP will sell or contribute, on an ongoing basis, its accounts receivable and related security and interests in the proceeds thereof (the “Transferred Receivables”) to the SPE. The SPE will finance a portion of its purchase of the accounts receivable through borrowings, on a revolving basis, of up to $100 million (with the ability to request an increase in the size of the New ABL Facility by $50 million) under the Credit Agreement, and such borrowings will be secured by the accounts receivable. The SPE will finance its purchase of the remaining portion of the accounts receivable by issuing subordinated promissory notes to BES LP and/or by contributing the remaining portion of the accounts receivables in exchange for equity in the SPE in the amount of the purchase price of the receivable not paid in cash. BES LP will be responsible for the servicing, administration and collection of the accounts receivable, with all collections going into lockbox accounts. The Company has provided a customary guaranty of performance to the administrative agent with respect to certain obligations of BES LP and any successor servicer under the New ABL Facility. In connection with entering into the New ABL Facility, on September 29, 2017, the Company amended the Term Loan Agreement to permit, among other things, (i) the acquisition of the Transferred Receivables by the SPE pursuant to the Transfer Agreement, free and clear of the liens under the Term Loan Agreement and (ii) the transactions contemplated under each of the Transfer Agreement and Credit Agreement. The Company consolidates the foregoing entities, and all intercompany activity is eliminated upon consolidation.

On October 27, 2017, the Company entered into Amendment No. 1. Among other things, Amendment No. 1 (i) increased the aggregate commitments under the Credit Agreement from $100 million to $120 million, (ii) appointed CIT Bank, N.A. to serve as syndication agent and (iii) added new lenders and amended the commitment schedule to the Credit Agreement.

As of September 30, 2017, Basic had $45.2 million of letters of credit outstanding secured by restricted cash borrowed under the New ABL Facility. Basic had borrowings under the New ABL Facility of $64.0 million as of September 30, 2017, giving Basic $30.9 million of available borrowing capacity under the New ABL Facility.

Basic’s interest expense consisted of the following (in thousands):



	Three Months Ended September 30,					Nine Months Ended September 30,
	2017			2016		2017			2016
	(Successor)			(Predecessor)		(Successor)			(Predecessor)
Cash payments for interest	$	7,611		$	5,899	$	16,919		$	38,459
Commitment and other fees paid	—			1,008		187			2,280
Amortization of debt issuance costs and discounts	1,850			1,528		5,731			5,876
Change in accrued interest	57			15,493		4,934			20,503
Capitalized interest	(660		)	—		(660		)	—
Other	34			25		70			70
	$	8,892		$	23,953	$	27,181		$	67,188