Subsequent Event

9 Months Ended

Sep. 30, 2015

Subsequent Events [Abstract]

Subsequent Event

Note 9 — Subsequent Event

On September 30, 2015, we entered into a purchase agreement with TC Lending, LLC and TAO Fund, LLC for the sale of $250.0 million in aggregate principal amount of 7.75% senior secured notes due 2020 (the “Notes”). On October 5, 2015, we completed the sale and issuance of the Notes. The Notes are secured by a first-priority lien on substantially all of our assets. The Notes bear interest at a rate of 7.75% per annum payable in cash quarterly in arrears on January 15, April 15, July 15, and October 15 of each year, beginning on October 15, 2015. The Notes will mature on October 5, 2020, at which time the outstanding principal will be due and payable. The Notes contain customary covenants and indemnification provisions.

In connection with the issuance of the Notes, we paid fees and expenses of approximately $8.8 million, including transaction fees and a one-time facility fee to the purchasers of the Notes, of which $8.5 million were accrued in other accrued expenses and capitalized as direct issuance costs recorded in other assets in our Condensed Consolidated Balance Sheet at September 30, 2015. On October 5, 2015, we used a portion of the proceeds from the Notes to redeem the $125.0 million in aggregate principal amount of 12.0% senior secured notes due in 2017, which is included in current liabilities in our Condensed Consolidated Balance Sheet at September 30, 2015. In addition, on October 5, 2015, we paid an $11.3 million redemption premium and $4.5 million in interest on the 12% notes, of which $3.2 million was recorded in current liabilities in our Condensed Consolidated Balance Sheet at September 30, 2015. As a result of these transactions and related costs, on October 5, 2015, we received cash of approximately $100.4 million.