Notes to Consolidated Financial Statements As of December 31, 2000 and 1999, EMCOR had approximately $12.1 million and $17.4 million of letters of credit outstanding, respectively. No revolving loans were outstanding under the 1998 Credit Facility at December 31, 2000 or 1999. In December 2000, EMCOR’s Canadian subsidiary, Comstock Canada Ltd., renewed a credit agreement with a bank providing for an overdraft facility of up to C$0.5 million. The facility is secured by a standby letter of credit and provides for interest at the  bank’s prime rate (7.5% at December 31, 2000). There were no borrowings outstanding under this facility at December 31, 2000 or 1999. The Canadian subsidiary may utilize EMCOR’s 1998  credit facility for any future working capital requirements. Long-term debt in the accompanying Consolidated Balance Sheets consisted of the following amounts as of December 31, 2000 and 1999 (in thousands): Note F –  Long-Term Debt Foreign Borrowings Series C Notes Convertible Subordinated Notes SellCo Notes On December 15, 1994, EMCOR issued approximately $62.8  million principal amount of Series C Notes. Interest on the Series C Notes was payable semiannually through June 15, 1996 by the issuance of additional Series C Notes and was thereafter payable quarterly in cash until redemption. The Series C Notes were  unsecured indebtedness of EMCOR and were subordinate to indebtedness under EMCOR’s 1996 credit facility. The Series C Notes were recorded at a discount to their face amount to yield  an estimated effective interest rate of 14.0%. On June 3, 1997, EMCOR purchased $1.0 million of Series C Notes and retired such notes. On June 27, 1997, EMCOR called for the partial redemption of approximately $10.9 million principal amount of Series C Notes. In accordance with the Indenture  governing the Series C Notes, the redemption price of the Series C Notes was 105% of the principal amount redeemed. Accordingly, EMCOR recorded an extraordinary loss of approximately  $1.0 million related to the early retirement of debt. The  extraordinary loss consisted primarily of the write-off of the  associated debt discount plus premiums and costs associated  with the redemption, net of income tax benefits of approximately $0.7 million. On March 18, 1998, EMCOR called for redemption  approximately $61.9 million principal amount of Series C Notes and irrevocably funded such amounts, together with the  redemption premium, with the trustee of the Series C Notes. In accordance with the Indenture governing the Series C Notes, the redemption price of the Series C Notes was 104% of the  principal amount redeemed. Accordingly, EMCOR recorded an extraordinary loss of $4.8 million net of income taxes related  to the early retirement of debt. The extraordinary loss consisted primarily of the write-off of the associated debt discount plus the redemption premium and costs associated with the redemption, net of income tax benefits. Supplemental SellCo Note On December 15, 1994, EMCOR issued to its wholly-owned  subsidiary SellCo Corporation (“SellCo”) its 8.0% promissory  note in the principal amount of approximately $5.5 million (the “Supplemental SellCo Note”). The Supplemental SellCo Note  provided that it matured on the earlier of (i) December 15, 2004 or (ii) one day prior to the date on which the SellCo Notes (hereafter defined) are deemed canceled. The Supplemental SellCo Note was recorded at a discount to its face amount to yield an estimated effective interest rate of 14.0%. In June 1998, EMCOR prepaid in full, including accrued interest thereon, the Supplemental SellCo Note. In March 1998, EMCOR sold, pursuant to an underwritten public offering, $115.0 million principal amount of 5.75% Convertible Subordinated Notes (“Subordinated Notes”). The Subordinated Notes will mature on April 1, 2005 and are general, unsecured  obligations of EMCOR, subordinated in right to all existing and future Senior Indebtedness (as defined in the indenture pursuant to which Subordinated Notes were issued (the “Subordinated Indenture”)) of EMCOR. The Subordinated Indenture does not contain any financial covenants or any restrictions on the payment of dividends, the repurchase of equity securities of EMCOR or the incurrence of Indebtedness (as defined in the Subordinated Indenture) or Senior Indebtedness. Holders of the Subordinated Notes have the right at any time to convert the Subordinated Notes into Common Stock of EMCOR at a conversion price of $27.34 per share. On December 15, 1994, SellCo issued approximately $48.1 million principal amount of 12.0% Subordinated Contingent Payments Notes, due 2004 (the “SellCo Notes”). Interest is payable  semiannually in additional SellCo Notes. Net Cash Proceeds  (as defined in the Indenture pursuant to which the SellCo Notes were issued) from the sales of stock or assets of SellCo subsidiaries were to be used to redeem SellCo Notes. The SellCo Notes are not obligations of EMCOR and, accordingly, are not included in the accompanying Consolidated Balance Sheets as of December 31, EMCOR, 2000 Annual Report 31 2000 1999 Convertible Subordinated Notes at 5.75%, due 2005 $ 115,000 $ 115,000 Note Payable at 6.0%, due 2000 – 1,150 Capitalized Lease Obligations at weighted average interest rates from 5.0% to 11.6%, payable in varying amounts through 2005 573 554 Other, at weighted average interest rates of approximately 10.0%, payable in varying amounts through 2016 1,056 1,534 116,629 118,238 Less: current maturities 751 2,235 $ 115,878 $ 116,003