Long-Term Debt

9 Months Ended

Sep. 30, 2011

6. Long-Term Debt

Debt consisted of the following:

	September 30, 2011		December 31, 2010
	(in thousands)
Senior Secured Credit Facility:
Rail Term Loan	$	—	$	601,185
Senior Secured Notes	475,000		—
ABL Credit Facility	—		—
Total debt	475,000		601,185

	September 30, 2011		December 31, 2010
	(in thousands)
Less: Current maturities	—		—
Long-term debt, less current maturities	$	475,000	$	601,185

On January 25, 2011, the Company sold $475.0 million of 8 1/8% Senior Secured Notes due 2017 (the “Senior Secured Notes”) in a private offering, for gross proceeds of $475.0 million. The net proceeds of the issuance of the Senior Secured Notes, together with an approximately $140.0 million equity contribution from Holdings Corp., were used to repay all amounts outstanding under the Facility as well as fees and expenses incurred in connection with the offering of the Senior Secured Notes. In connection with the issuance of the Senior Secured Notes, the Company entered into an Asset Based Lending (“ABL”) Facility that matures on January 25, 2015. Availability on the ABL Facility as of September 30, 2011 was approximately $30.0 million and was undrawn.

On August 12, 2011, the Company commenced an exchange offer of the privately placed Senior Secured Notes for senior secured notes which have been registered under the Securities Act of 1933, as amended. The registered notes have terms that are substantially identical to the privately placed notes. The exchange offer was successfully completed on September 13, 2011.

As of September 30, 2011, the Senior Secured Notes will mature as follows (in thousands):

2011	$	—
2012	—
2013	—
2014	—
2015	—
Thereafter	$	475,000

For the three months ended September 30, 2011 and 2010, interest expense of $10.5 million and $17.1 million was incurred, respectively. For the nine months ended September 30, 2011 and 2010, interest expense of $33.2 million and $49.7 million was incurred, respectively.

Florida East Coast Railway Corp. 10-Q