7. Notes Payable and Revolving Line of Credit

Notes payable and revolving line of credit included the following as of March 31, 2015 and December 31, 2014 (in thousands):



	March 31,		December 31,
	2015		2014
6.875% senior notes	$	198,652	$	198,605
Revolving line of credit		55,000		20,000
Land development notes		5,049		5,737
Insurance premium notes		3,402		5,135
Capital lease obligations		218		133
Total notes payable and revolving line of credit	$	262,321	$	229,610

6.875% senior notes

In May 2014, we completed a private offering of $200.0 million in aggregate principal amount of 6.875% senior notes due 2022 (which we refer to as “Senior Notes”). We received net proceeds of approximately $193.3 million. The Senior Notes carry a coupon of 6.875% per annum and were issued at a price equal to 99.239% of their principal amount. The Senior Notes are unsecured senior obligations which are guaranteed on an unsecured senior basis by certain of our current and future subsidiaries. The Senior Notes contain certain restrictive covenants on issuing future secured debt and other transactions but do not contain financials covenants. The principal balance of the Senior Notes is due May 2022, with interest only payments due semi-annually in May and November of each year.

In February 2015, we completed an offer to exchange $200.0 million in aggregate principal amount of our 6.875% Senior Notes due 2022, which are registered under the Securities Act (which we refer to as the “Exchange Notes”), for all of the initial Senior Notes. The terms of the Exchange Notes are identical in all material respects to the initial Senior Notes, except that the Exchange Notes are registered under the Securities Act and the transfer restrictions, registration rights, and additional interest provisions applicable to the initial Senior Notes do not apply to the Exchange Notes.

Revolving line of credit

On October 21, 2014, we entered into a credit agreement with Texas Capital Bank, National Association, as Administrative Agent and L/C Issuer, and the lenders from time to time party thereto (which we refer to as the “Credit Agreement”). The Credit Agreement provides us with a revolving line of credit of up to $120 million (which we refer to as the “Revolving Credit Facility”). Unless terminated earlier, the Revolving Credit Facility will mature on October 21, 2017, and the principal amount thereunder, together with all accrued unpaid interest and other amounts owing thereunder, if any, will be payable in full on such date. We may request a 12-month extension of the maturity date subject to the approval of the lenders and the Administrative Agent.

Under the terms of the Credit Agreement, we are entitled to request an increase in the size of the Revolving Credit Facility by an amount not exceeding $80 million. If the existing lenders elect not to provide the full amount of a requested increase, we may invite one or more other lender(s) to become a party to the Credit Agreement, subject to the approval of the Administrative Agent and L/C Issuer. The Credit Agreement includes a letter of credit sublimit of $20 million. The obligations under the Revolving Credit Facility are guaranteed by substantially all of our operating subsidiaries.

Borrowings under the Revolving Credit Facility bear interest at a floating rate equal to LIBOR plus an applicable margin between 2.75% and 3.25% per annum, or, in the Administrative Agent’s discretion, a base rate plus an applicable margin between 1.75% and 2.25% per annum.

At March 31, 2015, we had $55 million outstanding under the Credit Agreement, which accrued interest at 2.92%.

Other financing obligations

The Company has four land development notes with maturity dates ranging from June 2015 to April 2016, with interest only payments ranging from 0.5% to 5.0%, and four insurance premium notes with maturity dates ranging from October 2015 to November 2015, with monthly interest and principal payments ranging from 2.65% to 3.89%. The Company also has various equipment leases with maturities ranging from two to four years.