Quarterly report pursuant to Section 13 or 15(d)

Debt

v3.23.3
Debt
 9 Months Ended
Sep. 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 September 30, 2023 and December 31, 2022:

  September 30, 2023
  Issuance Amount Unamortized Issuance Costs Carrying Value Fair Value (Level II)
(in thousands)
Revolving Credit Facility $ —  $ —  $ —  $ — 
Convertible Notes due 2025 317,500  (3,419) 314,081  293,875 
Convertible Notes due 2027 575,000  (13,691) 561,309  523,595 
Total debt $ 892,500  $ (17,110) $ 875,390  $ 817,470 

  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 September 30, 2023.

As of September 30, 2023 and December 31, 2022 there were no amounts outstanding under the Revolving Credit Facility, and all $500.0 million was available to borrow as of September 30, 2023.
As of September 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 $1.6 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 Nine Months Ended
  September 30, September 30,
  2023 2022 2023 2022
(in thousands)
Convertible Notes interest $ 4,368  $ 2,479  $ 13,476  $ 7,439 
Amortization of debt discount and issuance costs 1,389  1,443  4,258  4,917 
Undrawn and other fees 312  320  936  951 
Revolving Credit Facility interest 133  —  383  — 
 Total interest expense $ 6,202  $ 4,242  $ 19,053  $ 13,307 

The effective interest rate of the Convertible Notes was equal to the stated interest rate plus the amortization of the debt issuance costs and is set forth below:

  September 30, September 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