LONG-TERM DEBT AND NOTES PAYABLE

3 Months Ended

Mar. 31, 2015

Debt Disclosure [Abstract]

LONG-TERM DEBT AND NOTES PAYABLE

NOTE 7—LONG-TERM DEBT AND NOTES PAYABLE

The carrying values of our long-term debt obligations are as follows:

	March 31, 2015		December 31,2014
	(In thousands)
Long-term debt consists of:
Senior Notes	$	490,625	$	490,354
Term Loan		291,040		291,424
North Ocean 105 Construction Financing		46,024		45,888
Amortizing Notes		30,354		33,258
Capital lease obligation		2,802		2,802
Other financing		494		743
		861,339		864,469
Less: Amounts due within one year		27,092		27,026
Total long-term debt	$	834,247	$	837,443

LC Facility and Cash-Collateralized Bilateral Letters of Credit

As of March 31, 2015 and December 31, 2014, the aggregate face amount of letters of credit issued under our $400.0 million first-lien, first-out three-year letter of credit facility (the “LC Facility”) was $201.4 million and $195.8 million, respectively. No financial letters of credit have been issued under the LC Facility.

As of March 31, 2015, we had an aggregate face amount of approximately $111.8 million of cash collateralized letters of credit issued on a bilateral basis outside the LC Facility outstanding, including financial letters of credit of $20.8 million. As of December 31, 2014, we had an aggregate face amount of approximately $88.8 million of cash collateralized letters of credit issued on a bilateral basis outside the LC Facility outstanding, including financial letters of credit of $19.7 million. We have included the supporting cash collateral in restricted cash and cash equivalents in the accompanying Consolidated Balance Sheets as of March 31, 2015 and December 31, 2014.

Bank Guarantees

In 2012, McDermott Middle East, Inc. and MII executed a general reimbursement agreement in favor of a bank located in the UAE relating to issuances of bank guarantees in support of contracting activities in the Middle East and India. As of March 31, 2015 and December 31, 2014, bank guarantees issued under those arrangements totaled $73.7 million and $56.2 million, respectively.

Surety Bonds

In 2012 and 2011, we executed general agreements of indemnity in favor of surety underwriters based in Mexico relating to surety bonds issued in support of contracting activities of our subsidiaries J. Ray McDermott de México, S.A. de C.V. and McDermott, Inc. As of March 31, 2015 and December 31, 2014, bonds issued under these arrangements totaled $46.3 million and $52.5 million, respectively.

Debt Issuance Costs

Debt issuance costs of $25.5 million and $27.1 million as of March 31, 2015 and December 31, 2014, respectively, are included in the above carrying values of our long-term debt obligations.