Quarterly report pursuant to Section 13 or 15(d)

Debt

v3.19.2
Debt
 6 Months Ended
Jun. 30, 2019
Debt Disclosure [Abstract]  
Debt
Debt
 
The Company’s outstanding debt obligations as of June 30, 2019 and December 31, 2018 were as follows: 
 
 
June 30,
 
December 31,
 
 
2019
 
2018
Convertible Notes due 2019
 
$
172,500

 
$
172,500

Unaccreted discount on Convertible Notes due 2019
 
(2,888
)
 
(5,890
)
Unamortized issuance costs on Convertible Notes due 2019
 
(430
)
 
(899
)
Convertible Notes due 2019 carrying value
 
$
169,182

 
$
165,711

 
 
 
 
 
Convertible Notes due 2023
 
$
345,000

 
$
345,000

Unaccreted discount on Convertible Notes due 2023
 
(38,101
)
 
(42,641
)
Unamortized issuance costs on Convertible Notes due 2023
 
(6,821
)
 
(7,634
)
Convertible Notes due 2023 carrying value
 
$
300,078

 
$
294,725

 
 
 
 
 
Revolving credit facility balance
 
$
145,000

 
$
—


 
Interest expense was comprised of the following and is included in other expense, net in the condensed consolidated statement of operations:
 
 
Three Months Ended
 
Six Months Ended
 
 
June 30,
 
June 30,
 
 
2019
 
2018
 
2019
 
2018
Accretion of debt discount
 
$
3,784

 
$
2,411

 
$
7,542

 
$
3,829

Coupon interest
 
2,264

 
1,366

 
4,528

 
2,121

Amortization of issuance costs
 
862

 
621

 
1,720

 
1,071

Interest on revolving credit facility
 
1,196

 
1,429

 
1,196

 
3,994

Undrawn and other fees
 
157

 
165

 
373

 
213

 Total
 
$
8,263


$
5,992


$
15,359

 
$
11,228


 
Convertible Notes due 2019
 
In 2014, the Company issued $172,500 of Convertible Notes due 2019 that mature on December 15, 2019. The Convertible Notes due 2019 bear interest at a rate of 1.75% per annum payable semiannually in arrears on June 15 and December 15 of each year, beginning on June 15, 2015. The Convertible Notes due 2019 are general, unsecured obligations, subordinated in right of payment to the Company's obligations under its Credit Agreement.

 The effective interest rate of the liability component of the Convertible Notes due 2019 is equal to the stated interest rate plus the accretion of original issue discount. The effective interest rate on the liability component of the Convertible Notes due 2019 for three and six months ended June 30, 2019 and 2018 was 6%.

Convertible Notes due 2023

In May 2018, the Company issued $345,000 of Convertible Notes due 2023 that mature on June 1, 2023. The Convertible Notes due 2023 bear interest at a rate of 1.75% per annum payable semiannually in arrears on June 1 and December 1 of each year, beginning on December 1, 2018. The Convertible Notes due 2023 are general unsecured obligations, subordinated in right of payment to the Company's obligations under its Credit Agreement.

The effective interest rate of the liability component of the Convertible Notes due 2023 is equal to the stated interest rate plus the accretion of original issue discount. The effective interest rate on the liability component of the Convertible Notes due 2023 for the three and six months ended June 30, 2019 was 6%.

See “Note 15—Net Income (Loss) Per Share” for further discussion of the effect of conversion on net income (loss) per common share.

Credit Agreement
 
In July 2017, the Company and certain of its subsidiaries entered into a Second Amended and Restated Credit Agreement (“Second Amended and Restated Credit Agreement”) with a group of banks (“Banks”). Pursuant to the Second Amended and Restated Credit Agreement, the Banks have agreed to provide to the Company revolving credit commitments (“Revolving Credit Facility”) in the aggregate amount of up to $350,000 which amount may be increased by $50,000.  
 
The Company incurs interest on borrowings made under the Second Amended and Restated Credit Agreement at rates between 1.50% and 3.25% above LIBOR based on the Company’s total leverage ratio. Borrowings under the Second Amended and Restated Credit Agreement are scheduled to mature on July 18, 2022.
 
Obligations under the Second Amended and Restated Credit Agreement are guaranteed by substantially all of the Company’s U.S. subsidiaries. The Second Amended and Restated Credit Agreement includes certain financial covenants and, as of June 30, 2019, the Company was in compliance with these requirements.