DEBT

A summary of long-term debt is as follows:



	September 30,
(In thousands)	2014		2013
Senior Notes 6.5% due 2020	$	657,122	$	658,232
Revolving Credit Facility	1,085,000		605,000
Total long-term debt	$	1,742,122	$	1,263,232

Long-term Debt

Senior Notes - In January 2012, we issued $450 million of 6.50% fixed-rate Senior Notes due 2020 (the "Senior Notes"). We used the net proceeds to reduce outstanding borrowings under our credit facility. On June 21, 2013, we issued an additional $200 million of Senior Notes. The two issuances of Senior Notes together form a single series under the indenture with an aggregate principal amount of $650 million. Our Senior Notes are unsecured obligations and are not guaranteed by any of our subsidiaries. We received a premium of $8.5 million as part of the net proceeds for the Senior Notes issued in 2013. This premium is being amortized over the life of our Senior Notes.

As of September 30, 2014, we had $1.085 billion of outstanding borrowings and $5.9 million in letters of credit issued under our five-year aggregate $1.55 billion senior secured revolving credit facility.

Credit Facility - On April 10, 2014, we entered into an agreement to amend our revolving credit facility the ("Credit Facility"), which increased the total commitment to $1.55 billion from $1.1 billion and extended its maturity to May 2018 from May 2016. Our wholly-owned subsidiary, Atwood Offshore Worldwide Limited (“AOWL”), is the borrower under the Credit Facility, and we and certain of our other subsidiaries are guarantors under the facility.

Prior to the amendment, borrowings under the Credit Facility bore interest at the Eurodollar rate plus a margin ranging from 2.00% to 2.50% and the commitment on the unused portion of the underlying commitments ranged from 0.5% to 1.0% per annum. Borrowings under the Credit Facility bear interest at the Eurodollar rate plus a margin ranging from 1.75% to 2.00% and the commitment fee on the unused portion of the underlying commitment ranges from 0.30% to 0.40% per annum, each based on our corporate credit ratings. Our Credit Facility contains various financial covenants and as of September 30, 2014, we were in compliance with those covenants.

In connection with the amendment, we mortgaged as additional collateral the Atwood Mako and the Atwood Manta. As a result, first preferred mortgages on nine of our active drilling units (Atwood Aurora, Atwood Beacon, Atwood Condor, Atwood Eagle, Atwood Falcon, Atwood Hunter, Atwood Mako, Atwood Manta and Atwood Osprey,), as well as liens on the equity interests of our subsidiaries that own, directly or indirectly, such drilling units serve as collateral for our Credit Facility.

The weighted-average effective interest rate on our long-term debt during fiscal 2014 was 2.28%. The effective rate was determined after giving consideration to the effect of our interest rate swaps accounted for as hedges and the amortization of premiums or discounts. Interest expense for fiscal 2014, 2013 and 2012 was $41.8 million, $24.9 million and $6.5 million, respectively. Capitalized interest expense for fiscal 2014, 2013 and 2012 was $30.0 million, $33.2 million and $32.9 million, respectively.

Short-term Debt

In July 2014, we financed our primary insurance program covering against casualty and liability risks. The financing arrangement bears an interest rate of 1.57% and is amortizing over a period of nine months. We had a similar arrangement in fiscal 2013 and 2012 and the interest rate was 1.46% for fiscal 2013 and 1.46% for fiscal 2012.