Debt

Collectively, our credit facility is comprised of a term loan with a face amount of $545.0 million, maturing on October 19, 2022 (the “Senior Secured Term Loan”); a term loan with a face amount of $300.0 million, maturing on April 3, 2021 (the “Incremental Term Loan”); and a revolving line of credit with a face amount of $143.0 million, maturing on October 19, 2020 (the “Senior Secured Revolver”). The credit facility is collateralized by all of our assets.

The following table presents outstanding debt balances as of December 31, 2018 and 2017.



	As of December 31,
	2018		2017
Senior Secured Term Loan	$	532,063	$	534,250
Incremental Term Loan	279,000		291,000
Senior Secured Revolver	38,720		—
International lines of credit and other loans	9,810		3,315
Total principal	859,593		828,565
Less—current maturities of long-term debt	31,280		17,283
Principal, net of current portion	828,313		811,282
Less—unamortized debt issuance costs	16,842		20,477
Long-term debt, net of current portion	$	811,471	$	790,805

We capitalized interest costs amounting to $1.2 million, $1.1 million, and $1.6 million in the years ended December 31, 2018, 2017, and 2016, related to construction in progress.

Senior Secured Term Loan

On November 24, 2017, we amended our existing credit facility to reduce the applicable margin on outstanding borrowings under the Senior Secured Term Loan by 50 basis points from 4.25% to 3.75%. Outstanding borrowings under the Senior Secured Term Loan bear interest at the greater of 0.75% or one-month London Interbank Offered Rate (“LIBOR”) plus an applicable margin of 3.75%. At December 31, 2018, the Senior Secured Term Loan bore interest of 6.25%.

Incremental Term Loan

On November 24, 2017, we amended our existing credit facility to reduce the applicable margin on outstanding borrowings under the Incremental Term Loan by 50 basis points from 3.75% to 3.25%. Outstanding borrowings under the Incremental Term Loan bear interest at one-month LIBOR plus an applicable margin of 3.25%. At December 31, 2018, the Incremental Term Loan bore interest of 5.75%, one-month LIBOR plus 3.25%.

Second Lien Credit Agreement

On May 7, 2018, we amended our existing credit facility (the “May 2018 amendment”) to permit the Paragon Medical acquisition, to permit the Second Lien Credit Agreement, and to amend certain covenants. In connection with the May 2018 amendment, we, certain of our subsidiaries named therein, SunTrust Bank, as Administrative Agent, SunTrust Robinson Humphrey, Inc., as Lead Arranger and Bookrunner, and the lenders named therein, entered into a Second Lien Credit Agreement (the “Second Lien Credit Agreement”) pursuant to which SunTrust Bank and the other lenders extended to us a $200.0 million secured second lien term loan facility (the “Second Lien Facility”). We utilized the net proceeds from the Second Lien Facility, together with cash on hand, to pay the Paragon Medical purchase price and fees and expenses related to the acquisition. The Second Lien Facility was collateralized by all of our assets and had a maturity date of April 19, 2023. Outstanding borrowings under the Second Lien Facility bore interest at either (i) a base rate plus an applicable margin of 7.00%, or (ii) the greater of LIBOR or 1.00% plus an applicable margin of 8.00%. We paid $16.7 million of debt issuance costs related to the May 2018 amendment of which $12.9 million is included in the “Loss on extinguishment of debt and write-off of debt issuance costs” line on the Consolidated Statements of Operations and Comprehensive Income (Loss) and $3.8 million is capitalized as a reduction of long-term debt.

On September 18, 2018, a significant portion of net proceeds from a registered public offering of shares of our common stock was used to voluntarily prepay in the full the $200.0 million outstanding principal balance. We paid a prepayment penalty of two percent of the outstanding principal balance, or $4.0 million, and wrote off $2.6 million of unamortized debt issuance costs to the “Loss on extinguishment of debt and write-off of debt issuance costs” line on the Consolidated Statements of Operations and Comprehensive Income (Loss). Refer to Note 15 for additional information regarding the registered public offering.

Senior Secured Revolver

Outstanding borrowings under the Senior Secured Revolver bear interest at one-month LIBOR plus 3.50%. At December 31, 2018, the Senior Secured Revolver bore interest of 6.00%. We pay an annual commitment fee of 0.50% for unused capacity under the Senior Secured Revolver on a quarterly basis.

On December 26, 2018, we amended our existing credit facility (the “December 2018 amendment”) to increase the total available capacity under the Senior Secured Revolver and to reduce the consolidated net leverage ratio, the basis for certain financial covenants, for periods ended on or after December 31, 2018. The December 2018 amendment increased the total available capacity under the Senior Secured Revolver from $100.0 million to $125.0 million. We paid $0.1 million of debt issuance costs related to the December 2018 amendment which is capitalized as a reduction of long-term debt.

Total available capacity under the Senior Secured Revolver was $125.0 million as of December 31, 2018. Available capacity may be restored to $143.0 million upon the achievement of certain requirements. Our credit facility is subject to certain financial covenants based on a consolidated net leverage ratio, as defined in the credit facility agreement. The financial covenants are effective when we have outstanding borrowings under our Senior Secured Revolver on the last day of any fiscal quarter and become more restrictive over time. We had $38.7 million outstanding under the Senior Secured Revolver at December 31, 2018, and we were in compliance with all covenants under our credit facility.

International Lines of Credit and Other Loans

International lines of credit and other loans is comprised of loans with financial institutions in France, Brazil, and China (“international credit facilities”). The international credit facilities are used to fund working capital and equipment purchases for our manufacturing plants in those countries. As of December 31, 2018, the international credit facilities had $9.8 million outstanding of which $6.8 million is classified as “Current maturities of long-term debt” on the Consolidated Balance Sheets.

Future Maturities

The following table lists aggregate maturities of long-term debt for the next five years and thereafter.



Year Ending December 31,	Aggregate Maturities Principal Amounts
2019	$	31,280
2020	50,097
2021	261,094
2022	515,157
2023	344
Thereafter	1,621

Total outstanding principal	$	859,593