Debt and Financing Obligation

9 Months Ended

Sep. 30, 2020

Debt Disclosure [Abstract]

Debt and Financing Obligation

7. Debt and Financing Obligation

Total debt and financing obligation, including the current portion of the financing obligation, consisted of the following:

	September 30, 2020		December 31, 2019
	(Dollars in millions)
7.50 percent senior notes, due 2025 ("2025 Senior Notes")	$	630.5	$	650.0
$400.0 million revolving credit facility, due 2024 ("Revolving Facility")	104.3		143.3
5.82 percent financing obligation, due 2021 ("Financing Obligation")	5.1		7.2
Total borrowings	739.9		800.5
Original issue discount	(3.7)		(4.3)
Debt issuance costs	(11.4)		(13.3)
Total debt and financing obligation	$	724.8	$	782.9
Less: current portion of financing obligation	5.1		2.9
Total long-term debt and financing obligation	$	719.7	$	780.0

2025 Senior Notes

During the nine months ended September 30, 2020, the Company repurchased $19.5 million face value of outstanding 2025 Senior Notes for $15.8 million of cash payments, resulting in a gain on extinguishment of debt on the Consolidated Statements of Operations of $3.4 million, net of the write-off of unamortized debt issuance costs and original issue discount. Subsequent to September 30, 2020, the Company repurchased an additional $33.2 million face value of outstanding 2025 Senior Notes for $30.2 million of cash payments, which will result in an additional gain on extinguishment of debt of $2.4 million, net of the write-off of unamortized debt issuance costs and original issue discount.

Revolving Facility

As of September 30, 2020, the Revolving Facility had letters of credit outstanding of $11.8 million and a $104.3 million outstanding balance, leaving $283.9 million available. Additionally, the Company has certain letters of credit totaling $11.5 million, which do not reduce the Revolving Facility's available balance.

Covenants

Under the terms of the Revolving Facility, the Company is subject to a maximum consolidated net leverage ratio of 4.50:1.00 and a minimum consolidated interest coverage ratio of 2.50:1.00. The Company's debt agreements contain other covenants and events of default that are customary for similar agreements and may limit our ability to take various actions including our ability to pay a dividend or repurchase our stock.

If we fail to perform our obligations under these and other covenants, the lenders' credit commitment could be terminated and any outstanding borrowings, together with accrued interest, under the Revolving Facility could be declared immediately due and payable. The Company has a cross default provision that applies to our indebtedness having a principal amount in excess of $35.0 million.

As of September 30, 2020, the Company was in compliance with all applicable debt covenants. We do not anticipate a violation of these covenants nor do we anticipate that any of these covenants will restrict our operations or our ability to obtain additional financing.