Debt

6 Months Ended

Jun. 30, 2017

NOTE 6.Debt

The Company’s debt obligations consist of a $1.275 billion Senior Secured Term Loan Facility (“Term Loan”) and a $200.0 million Senior Secured Revolving Credit Facility (“Revolving Credit Facility,” and together with the Term Loan, the “2016 Credit Facility”). As of June 30, 2017, the Company had not drawn any amounts under the Revolving Credit Facility. The 2016 Credit Facility requires that the Company comply with a maximum leverage ratio. The Company was in compliance with its debt covenants as of June 30, 2017.

In December 2016, the Company commenced a tender offer for the $600.0 million aggregate principal amount of its outstanding 5.25% senior notes due February 1, 2021 (“Senior Notes”). In January 2017, the Company completed the subsequent redemption of the remaining outstanding Senior Notes for a total redemption price of $36.1 million, inclusive of accrued interest and related premiums.

The following table provides a summary of the Company’s long-term debt:


(in millions)	June 30, 2017		December 31, 2016
Term Loan due January 15, 2024	$	1,268.6	$	1,275.0
Senior Notes due February 1, 2021		—		34.4
Total borrowings		1,268.6		1,309.4
Less: unamortized discounts and issuance costs		(18.1)		(20.1)
Total borrowings, net		1,250.5		1,289.3
Less: current maturities of long-term debt		(12.8)		(47.2)
Total long-term debt, net	$	1,237.7	$	1,242.1

The Company’s future debt payments, excluding interest payments, consisted of the following as of June 30, 2017:


(in millions)	Amount
Remainder of 2017	$	6.4
2018		12.8
2019		12.8
2020		12.8
2021		12.8
Thereafter		1,211.0
Total	$	1,268.6

Interest expense, net consisted of the following:


	For the three months ended				For the six months ended
	June 30,				June 30,
(in millions)	2017		2016		2017		2016
Interest	$	12.3	$	14.5	$	23.8	$	28.9
Accretion of debt discount, debt issuance cost amortization and line of credit fees		1.1		2.0		2.3		4.0
Capitalized interest		—		(11.7)		(3.1)		(22.9)
Interest expense	$	13.4	$	4.8	$	23.0	$	10.0
Interest income		(0.1)		(0.1)		(0.2)		(0.2)
Interest expense, net	$	13.3	$	4.7	$	22.8	$	9.8

DIGITALGLOBE, INC. 10-Q