LAST OUT TERM LOANS

The Last Out Term Loan components are as follows:



(in thousands)	December 31, 2018
Proceeds	$	30,000
Discount and fees	5,111
Paid-in-kind interest	132
Principal	35,243
Unamortized discount and fees	(4,594		)
Net debt balance	$	30,649

Tranche A-1

As referenced above, our Amended Credit Agreement required us to draw $30.0 million of net proceeds under Tranche A-1 of the Last Out Term Loans ("Tranche A-1"), which were borrowed from B. Riley FBR, Inc., a related party, in September and October 2018. On November 19, 2018, Tranche A-1 was assigned from B. Riley FBR, Inc., a related party, to Vintage Capital Management LLC, also a related party. The face principal amount of Tranche A-1 is $30.0 million, which excludes a $2.0 million up-front fee that was added to the principal balance on the first funding date, transaction expenses, paid-in-kind interest, and original issue discounts of 10.00% for each draw under Tranche A-1. Tranche A-1 is incurred under our Amended Credit Agreement and shares on a pari passu basis with the U.S. Revolving Credit Facility. Tranche A-1 matures and is payable in full on July 1, 2020, the day after the maturity date of the U.S. Revolving Credit Facility. Tranche A-1 may be prepaid, subject to the subordination provisions, but not re-borrowed.

Tranche A-1 bears interest at a rate per annum equal to (i) if designated a eurocurrency rate loan, the then-applicable U.S. LIBOR rate plus 14.00%, with 5.50% of such interest rate to be paid in cash and the remaining 8.50% payable in kind by adding such accrued interest to the principal amount of Tranche A-1 and (ii) if designated a base rate loan, the then applicable prime rate set by the Administrative Agent plus 13.00%, with 4.50% of such interest rate to be paid in cash and the remaining 8.50% payable in kind by adding such accrued interest to the principal amount of Tranche A-1. Subject to the subordination provisions, Tranche A-1 shall be subject to all of the other same representations and warranties, covenants and events of default under the Amended Credit Agreement. The total effective interest rate of Tranche A-1 was 25.38% on December 31, 2018. The effective rate of the Tranche A-1 may fluctuate over the life of the loan due to changes in LIBOR, the prime rates or any repayments. Interest expense associated with Tranche A-1 is detailed in Note 26.

As of December 31, 2018, the Tranche A-1 net carrying value of $30.6 million is presented as a current liability in our Consolidated Balance Sheets as a result of the limited waivers that extend through April 5, 2019. See Note 31 for additional Last Out Term Loan transactions and modifications subsequent to December 31, 2018.