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Subsequent Events
9 Months Ended
Sep. 30, 2013
Subsequent Events

Note 12. Subsequent Events

On October 4, 2013, the Company completed a public debt offering of $265 million principal amount of 5.75% Senior Notes due October 15, 2023 (“5.75% Senior Notes”) and received net proceeds of $263 million. The Company used a portion of the proceeds of the 5.75% Senior Notes for the purpose of redeeming the $115 million aggregate principal amount of our 7% Senior Notes due May 1, 2016. The Company incurred a charge of $17.9 million for the payment of call premium in connection with the redemption of the 7.0% Senior Notes due 2016. The effective interest rate related to the net proceeds received from the 5.75% Senior Notes is approximately 5.84%. Interest will be paid on the 5.75% Senior Notes each April 15 and October 15 with the first payment due on April 15, 2014.

The Company may redeem the 5.75% Senior Notes in whole at any time or in part from time to time at a make-whole redemption price. The 5.75% Senior Notes are the Company’s only senior unsecured obligation and will rank equally with future senior unsecured indebtedness.