DEBT

Our balances for long-term debt and capital lease obligations are as follows (in thousands):



	September 30,			December 31,
	2016			2015
$550 million revolving credit facility	$	454,500		$	358,412
Financing obligation associated with Rocky Top acquisition	—			26,250
Note payable	836			876
Lease financing obligations	57,792			58,842
Total debt and lease financing obligations	513,128			444,380
Current portion	2,852			8,342
Noncurrent portion	510,276			436,038
Deferred financing fees	(4,300		)	(5,406		)
Total	$	505,976		$	430,632

The following represents principal payments due on our revolving credit facility and note payable for the next five years, excluding lease financing obligations (in thousands):



Remainder of 2016	$	14
2017	57
2018	765
2019	454,500
Total	$	455,336

Our $550 million revolving credit facility is secured by substantially all of our assets. Letters of credit outstanding at September 30, 2016 and December 31, 2015 totaled $4.3 million and $16.0 million, respectively. The amount of availability at September 30, 2016 under the revolving credit facility, after taking into account debt covenant constraints, was $57.0 million. In connection with future acquisitions, the revolving credit facility requires, among other things, that we have, after giving effect to such acquisition, at least $20.0 million, in the aggregate, of borrowing availability under the revolving credit facility and unrestricted cash on the balance sheet on the date of such acquisition.

Renegotiation of Rocky Top Purchase Obligation

In connection with the Rocky Top acquisition completed in September 2013, we entered into a deferred seller financing arrangement, which obligated us to purchase certain sites over a 5-year period for an average of $5.2 million per year beginning in 2016 at an approximately 7.7% capitalization rate. In June 2016, we renegotiated the terms with the sellers, eliminating the deferred seller financing obligation and agreeing to terms of a new lease of the assets for an initial term of 15 years and 8 months with four renewal options of five years each. Under this triple net lease, annual rent is initially $1.8 million based on a 6.5% capitalization rate and increases 1.5% per year. However, because of the continuing involvement we have with the sites through the lease and sublease of the properties, we recorded the liability on our balance sheet at fair value on the date of the reclassification, which approximated its carrying value. During the second quarter of 2016, we reclassified the liability from debt and capital lease obligations to accrued expenses and other current liabilities and other noncurrent liabilities on the consolidated balance sheet.

Financial Covenants and Interest Rate

Our revolving credit facility contains financial covenants consisting of a total leverage ratio (as defined in the credit facility) for the most recently completed four fiscal quarters of less than or equal to 5.00 to 1.00 and a consolidated interest coverage ratio (as defined in the credit facility) of greater than or equal to 2.75 to 1.00. As of September 30, 2016, we were in compliance with these covenants. The total leverage ratio covenant is 5.00 to 1.00 for the two quarters following a material acquisition (as defined in the credit facility). As such, the total leverage ratio steps down to 4.50 to 1.00 on December 31, 2016 assuming there are no material acquisitions for the remainder of 2016.

Outstanding borrowings under the revolving credit facility bear interest at the LIBOR plus a margin of 3.00%. Our borrowings had an interest rate of 3.52% as of September 30, 2016.