Quarterly report pursuant to Section 13 or 15(d)

Debt

v3.23.2
Debt
 6 Months Ended
Jun. 30, 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 June 30, 2023 and December 31, 2022:

  June 30, 2023
  Issuance Amount Unamortized Issuance Costs Carrying Value Fair Value (Level II)
(in thousands)
Revolving Credit Facility $ 20,000  $ —  $ 20,000  $ 20,000 
Convertible Notes due 2025 317,500  (3,870) 313,630  292,576 
Convertible Notes due 2027 575,000  (14,455) 560,545  607,499 
Total debt $ 912,500  $ (18,325) $ 894,175  $ 920,075 

  December 31, 2022
  Issuance Amount Unamortized Issuance Costs Carrying Value Fair Value (Level II)
(in thousands)
Revolving Credit Facility $ —  $ —  $ —  $ — 
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 

Revolving Credit Facility

The Revolving Credit Facility 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 June 30, 2023.

As of June 30, 2023, the Company had $20.0 million of borrowings under the Revolving Credit Facility at an effective interest rate of 7.5%, with a remaining available balance on the Revolving Credit Facility of $480.0 million.

On July 19, 2023, the $20.0 million outstanding balance under the Revolving Credit Facility was repaid and the remaining available balance on the Revolving Credit Facility was $500.0 million.

As of June 30, 2023 and December 31, 2022, debt issuance costs related to the Revolving Credit Facility 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 $1.8 million and $2.2 million, respectively.

Convertible Notes due 2023

The Convertible Notes due 2023 matured on June 1, 2023. Upon maturity, the Company settled the remaining aggregate principal amount on the Convertible Notes due 2023 for $45.0 million. The Convertible Notes due 2023 were paid using a combination of cash on hand and borrowings under the Company's Revolving Credit Facility. No shares of the Company's common stock were issued upon settlement of the Convertible Notes due 2023.
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 Six Months Ended
  June 30, June 30,
  2023 2022 2023 2022
(in thousands)
Convertible Notes interest $ 4,543  $ 2,480  $ 9,108  $ 4,960 
Amortization of debt discount and issuance costs 1,427  1,415  2,869  3,474 
Undrawn and other fees 311  317  624  631 
Revolving Credit Facility interest 250  —  250  — 
 Total interest expense $ 6,531  $ 4,212  $ 12,851  $ 9,065 

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:

  June 30, June 30,
  2023 2022
Convertible Notes due 2023 N/A 2.4  %
Convertible Notes due 2025 1.3  % 1.3  %
Convertible Notes due 2027 3.2  % N/A