Quarterly report pursuant to Section 13 or 15(d)

Debt

v3.23.1
Debt
 3 Months Ended
Mar. 31, 2023
Debt Disclosure [Abstract]  
Debt Debt
The following tables set forth the carrying value and estimated fair value of the Company's debt obligations as of March 31, 2023 and December 31, 2022:

  March 31, 2023
  Issuance Amount Unamortized Issuance Costs Carrying Value Fair Value (Level II)
(in thousands)
Third Credit Agreement $ —  $ —  $ —  $ — 
Convertible Notes due 2023 45,000  (46) 44,954  44,168 
Convertible Notes due 2025 317,500  (4,318) 313,182  284,220 
Convertible Notes due 2027 575,000  (15,214) 559,786  598,270 
Total debt $ 937,500  $ (19,578) $ 917,922  $ 926,658 

  December 31, 2022
  Issuance Amount Unamortized Issuance Costs Carrying Value Fair Value (Level II)
(in thousands)
Third Credit Agreement $ —  $ —  $ —  $ — 
Convertible Notes due 2023 45,000  (114) 44,886  46,058 
Convertible Notes due 2025 317,500  (4,765) 312,735  293,688 
Convertible Notes due 2027 575,000  (15,966) 559,034  606,119 
Total debt $ 937,500  $ (20,845) $ 916,655  $ 945,865 

Credit Agreement

The Third Credit Agreement contains customary conditions, representations and warranties, affirmative and negative covenants, mandatory prepayment provisions and events of default. The covenants include certain financial covenants requiring the Company to maintain compliance with a maximum total leverage ratio and a minimum interest coverage ratio. The Company was in compliance with these financial covenants as of March 31, 2023.

As of March 31, 2023 and December 31, 2022, there were no amounts outstanding under the Revolving Credit Facility and as of March 31, 2023 all $500.0 million was available to borrow. As of March 31, 2023 and December 31, 2022, debt issuance costs related to the Third Credit Agreement included in prepaid expense and other current assets in the condensed consolidated balance sheets was $0.7 million and $0.7 million, respectively and included in other assets in the condensed consolidated balance sheets was $2.0 million and $2.2 million, respectively.

Interest Expense

Interest expense was comprised of the following and is included in other expense, net in the condensed consolidated statements of operations:
  Three Months Ended
  March 31,
  2023 2022
(in thousands)
Coupon interest $ 4,565  $ 2,480 
Amortization of debt discount and issuance costs 1,442  2,060 
Undrawn and other fees 313  313 
 Total interest expense $ 6,320  $ 4,853 
The effective interest rate of the Notes was equal to the stated interest rate plus the amortization of the debt issuance costs and is set forth below:
  Three Months Ended
  March 31,
  2023 2022
Convertible Notes due 2023 2.4  % 2.4  %
Convertible Notes due 2025 1.3  % 1.3  %
Convertible Notes due 2027 3.2  % N/A