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Debt
 6 Months Ended
Jun. 30, 2025
Debt Disclosure [Abstract]  
Debt Debt
The components of debt consisted of the following:
June 30, 2025December 31, 2024
(in millions)
Maturity Date
Amount
Amount
Equipment financing
20254.7 8.7 
Mortgage
202559.7 60.9 
Convertible Senior Notes
2026378.4 800.0 
Equipment financings
202841.2 40.8 
Revolving Credit Facility2030— — 
Term Loan B
2031480.0 482.5 
Senior Unsecured Notes
2033450.0 — 
Unamortized debt discount2025 - 2033(3.7)(5.4)
Debt issuance costs2025 - 2033(10.6)(7.7)
Total debt, net1,399.7 1,379.8 
Less: current portion460.7 83.8 
Total long-term debt, net$939.0 $1,296.1 
Convertible Senior Notes
The Company’s 0.375% Convertible Senior Notes due September 2026 (the “Convertible Notes”) have an effective interest rate of 1.25%. The components of interest expense related to the Convertible Notes were as follows:
Three Months Ended June 30,Six Months Ended June 30,
(in millions)
2025202420252024
Contractual interest expense
$0.4 $0.8 $1.1 $1.5 
Amortization of debt issuance costs
0.4 0.8 1.2 1.5 
  Total interest recognized on the Convertible Notes
$0.8 $1.5 $2.3 $3.0 
As of June 30, 2025 and December 31, 2024, unamortized issuance costs associated with the Convertible Notes were $1.7 million and $5.1 million, respectively.
The Convertible Notes are convertible into cash, shares of the Company’s common stock, or the combination of cash and shares of common stock, at the Company’s election, at an initial conversion rate of 4.4105 shares of common stock per $1,000 principal amount of the notes, which is equivalent to a conversion price of $226.73 per share, subject to adjustment under certain circumstances. The notes will be convertible at the holder’s election, from June 1, 2026 through August 28, 2026 and prior to then under certain circumstances as set forth in the agreement. Additionally, on or after September 6, 2023, the Company may redeem for cash all or a portion of the Convertible Notes, if its stock price has been equal to or greater than $294.75 for at least 20 of the prior 30 consecutive trading days including the date which the Company provides notice of redemption.
Additional interest of 0.5% per annum is payable if the Company fails to timely file required documents or reports with the Securities and Exchange Commission (“SEC”). If the Company merges or consolidates with a foreign entity, the Company may be required to
pay additional taxes. The Company determined that the higher interest payments and tax payments required in certain circumstances were embedded derivatives that should be bifurcated and accounted for at fair value. The Company assessed the value of the embedded derivatives at each balance sheet date and determined they had nominal value.
In conjunction with the issuance of the Convertible Notes, the Company purchased capped call options on the Company’s common stock with certain counterparties to reduce the potential dilution to its common stock (or, in the event the conversion is settled in cash, to provide a source of cash to settle a portion of its cash payment obligation) if, at the time of conversion, its stock price exceeds the conversion price under the Convertible Notes. The capped call options have an initial strike price of $335.90 per share, which represents a premium of 100% over the last reported sale price of the Company’s common stock of $167.95 per share on the date of the transaction. The capped call options were recorded within stockholders’ equity on the consolidated balance sheets.
During the three months ended June 30, 2025, the Company repurchased $294.7 million in principal ($293.1 million net of issuance costs) of the Convertible Notes for $377.6 million in cash, which resulted in an $84.4 million loss on extinguishment. The Company repurchased a total of $419.9 million in principal ($417.6 million net of issuance costs) of the Convertible Notes for $541.5 million in cash during the six months ended June 30, 2025, which resulted in a $123.9 million loss on extinguishment. Additionally, during the three and six months ended June 30, 2025, the Company received proceeds from the settlement of capped calls options totaling $52.6 million and $75.7 million, respectively.
In June 2025, the Company issued a notice of redemption for the remaining $380.1 million in principal of the Convertible Notes outstanding and terminated the related capped calls options. These transactions will settle in August 2025.
Senior Secured Credit Agreement
In March 2025, the Company upsized the borrowing capacity under its Revolving Credit Facility to $500 million and extended the maturity date to March 2030.
In June 2025, the Company amended its Term Loan B to bear interest at a rate of Secured Overnight Financing Rate (“SOFR”) plus 2.00%. At the same time, the Company amended its Revolving Credit Facility such that borrowings bear interest at a rate of SOFR plus an applicable margin of 1.50% to 2.00% based on the Company’s total leverage ratio.
Senior Unsecured Notes
In March 2025, the Company issued $450 million aggregate principal amount of 6.5% senior unsecured notes due April 2033, which have an effective interest rate of 6.84%. The net proceeds of $440.7 million were used to repurchase a portion of the Convertible Notes. The senior unsecured notes contain leverage and fixed charge coverage ratio covenants, both of which are measured upon the incurrence of future debt, as well as other customary covenants.
Carrying Value
At the end of each period, the carrying value of the Company’s debt was comprised of the following:
(in millions)
June 30, 2025December 31, 2024
Convertible Notes$378.4 $794.9 
Term Loan B
475.0 475.1 
Senior Unsecured Notes
440.9 — 
Equipment financings45.8 49.3 
Mortgage59.6 60.6 
  Total debt, net$1,399.7 $1,379.8