CorEnergy Infrastructure Trust, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Convertible Debt Convertible Debt

Convertible Debt Convertible Debt

6 Months Ended

Jun. 30, 2016

On May 23, 2016, the Company repurchased $1 million of its convertible bonds on the open market. This resulted in the company writing off a small portion of the original underwriter's discount and deferred debt costs, as well as recognizing a gain on extinguishment of debt of $72 thousand which is included in Interest Expense in the Consolidated Statements of Income.

The following is a summary of the impact of Convertible Notes on interest expense for the three and six months ended June 30, 2016 and 2015, respectively:



Convertible Note Interest Expense
	For the Three Months Ended				For the Six Months Ended
	June 30, 2016		June 30, 2015		June 30, 2016		June 30, 2015
7% Convertible Notes	$	1,983,528	$	44,722	$	3,996,028	$	44,722
Discount Amortization	185,727		4,183		373,962		4,183
Deferred Debt Issuance Amortization	12,703		197		24,958		197
Total	$	2,181,958	$	49,102	$	4,394,948	$	49,102

The Convertible Notes were initially issued with an underwriters' discount of $3.7 million which is being amortized over the life of the Convertible Notes. Including the impact of the convertible debt discount and related deferred debt issuance costs, the effective interest rate on the Convertible Notes is approximately 7.7 percent, respectively, for the three and six months ended June 30, 2016.