Long-term debt
| | | | | | | | | | | | | | | |
| (Expressed in thousands) | | | | | |
| Issued | | | December 31, 2024 | | December 31, 2023 |
5.50% Senior Secured Notes | | | $ | — | | | $ | 113,050 | |
| Unamortized Debt Issuance Cost | | | — | | | (392) | |
| | | $ | — | | | $ | 112,658 | |
5.50% Senior Secured Notes due 2025 (the "Notes")
On September 22, 2020, in a private offering, the Company issued $125.0 million aggregate principal amount of 5.50% Senior Secured Notes due 2025 (the "Unregistered Notes") under an indenture at an issue price of 100% of the principal amount. The Company used the net proceeds from the offering of the Unregistered Notes, along with cash on hand, to redeem in full our 6.75% Senior Secured Notes due July 1, 2022 (the "Old Notes") in the principal amount of $150.0 million (the Company held $1.4 million in treasury for a net outstanding amount of $148.6 million), and pay all related fees and expenses in relation thereto.
On November 23, 2020, we completed an exchange offer in which we exchanged 99.8% of the Unregistered Notes for a like principal amount of notes (the "Notes") with identical terms, except that such new notes have been registered under the Securities Act of 1933, as amended (the "Securities Act"). We did not receive any proceeds in the exchange offer. The Notes had a stated maturity of October 1, 2025 and bore interest at a rate of 5.50% per annum, payable semiannually on April 1st and October 1st, respectively, of each year.
On September 19, 2024, the Company issued a notice of redemption to the holders of its Notes stating that it intended to redeem all of the $113.05 million aggregate principal amount of the Notes outstanding on October 10, 2024. The Company had previously repurchased and retired $11.95 million of the Notes through open market purchases completed in 2022 and 2023. On October 10, 2024, the Company completed its redemption of all of the $113.05 million aggregate principal amount of the Notes outstanding at a redemption price equal to 100% of the principal amount of the Notes redeemed, plus accrued and unpaid interest.
Interest expense on the Notes for the year ended December 31, 2024 was $4.8 million ($6.2 million for the year ended December 31, 2023). Interest paid on the Notes for the year ended December 31, 2024 was $4.8 million ($6.2 million for the year ended December 31, 2023).
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.