Note 5. Long-Term Debt
Long-term debt consists of the following (in thousands):
Under the Company's $1.0 billion unsecured revolving credit facility (the "$1 Billion Revolving Credit Facility"), the contractual interest rate on balances outstanding varies with the Company's debt rating. In addition, the $1 Billion Revolving Credit Facility contains a competitive bid provision which may allow the Company to borrow funds at less than the contractual interest rate.
In May 1997, the Company redeemed the remaining $104.5 million of 11-3/8% Senior Subordinated Notes and incurred an extraordinary charge of approximately $7.6 million, or $0.10 per share on a diluted basis, on the early extinguishment of debt.
The Senior Notes and Senior Debentures are unsecured and are not redeemable prior to maturity.
The Company entered into a $264.0 million capital lease to finance Splendour of the Seas and a $260.0 million capital lease to finance Legend of the Seas in 1996 and 1995, respectively. The capital leases have semi-annual payments of $12.8 million and $12.6 million, respectively, and both leases have an implicit interest rate of 7.8% over 15 years.
The Company's debt agreements contain covenants that require the Company, among other things, to maintain minimum liquidity amounts, net worth and fixed charge coverage ratios and limit debt to capital ratios. The Company is in compliance with all covenants as of December 31, 1997. Following is a schedule of principal repayments on long-term debt (in thousands):
