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SWIFT ENERGY COMPANY 2000 ANNUAL REPORT |
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Notes to Consolidated Financial Statements |
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4. Long-Term Debt Our long-term debt as of December 31, 2000 and 1999, is as follows:
Bank Borrowings. At December 31, 2000, we had outstanding borrowings of $10.6 million under our $250.0 million credit facility with a syndicate of eight banks which has a borrowing base of $200 million. At December 31, 1999, we had no borrowings under our credit facility. The interest rate is either (a) the lead bank’s prime rate (9.5% at December 31, 2000) or (b) the adjusted London Interbank Offered Rate ("LIBOR") plus the applicable margin depending on the level of outstanding debt. The applicable margin is based on the ratio of the outstanding balance to the last calculated borrowing base. Of the $10.6 million borrowed at December 31, 2000, $5.0 million was borrowed at the LIBOR rate plus applicable margin (7.8875% at December 31, 2000). The terms of our credit facility include, among other restrictions, a limitation on the level of cash dividends (not to exceed $2.0 million in any fiscal year), requirements as to maintenance of certain minimum financial ratios (principally pertaining to working capital, debt, and equity ratios), and limitations on incurring other debt. Since inception, no cash dividends have been declared on our common stock. We are currently in compliance with the provisions of this agreement. The credit facility extends until August 2002. Interest expense on the credit facility, including commitment fees and amortization of debt issuance costs, totaled $654,936 in 2000, $6,107,270 in 1999, and $5,575,505 in 1998. Convertible Notes. In November 1996, we sold $115 million of 6.25% Convertible Subordinated Notes due 2006. The Convertible Notes were unsecured and convertible into common stock of Swift at the option of the holders at an adjusted conversion price of $31.534 per share. Interest on the notes was payable semiannually, on May 15 and November 15. On December 11, 2000, we called for the redemption of our Convertible Notes effective December 26, 2000 at 103.75% of their principal amount. Holders of approximately $100.0 million of the Convertible Notes elected to convert their notes into 3,164,644 shares of our common stock. Holders of the remaining $15.0 million of the Convertible Notes elected to redeem their notes for cash plus accrued interest. This cash redemption resulted in our recognizing an Extraordinary Loss on the Early Extinguishment of Debt (net of taxes) of $0.6 million, or $1.0 million before taxes. Interest expense on the Convertible Notes, including amortization of debt issuance costs, totaled $7,426,599 in 2000, $7,569,361 in 1999, and $7,544,650 in 1998. Senior Notes. Our Senior Notes consist of $125,000,000 of 10.25% Senior Subordinated Notes due 2009. The Senior Notes were issued at 99.236% of the principal amount on August 4, 1999, and will mature on August 1, 2009. The Senior Notes are unsecured senior subordinated obligations and are subordinated in right of payment to all our existing and future senior debt, including our bank debt. Interest on the Senior Notes is payable semiannually, on February 1 and August 1, and commenced with the first payment on February 1, 2000. On or after August 1, 2004, the Senior Notes are redeemable for cash at the option of Swift, with certain restrictions, at 105.125% of principal, declining to 100% in 2007. In addition, prior to August 1, 2002, we may redeem up to 33.33% of the Senior Notes with the proceeds of qualified offerings of our equity at 110.25% of the principal amount of the Senior Notes, together with accrued and unpaid interest. Upon certain changes in control of Swift, each holder of Senior Notes will have the right to require us to repurchase the Senior Notes at a purchase price in cash equal to 101% of the principal amount, plus accrued and unpaid interest to the date of purchase. Interest expense on the Senior Notes, including amortization of debt issuance costs and discount, totaled $13,092,127 in 2000 and $5,303,266 in 1999.
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This page was last updated on Saturday, February 08, 2003, at 07:28:58 PM. Copyright © 1994-2008 by Swift Energy Company. |
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