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Long-term Debt, Net (Tables) | 12 Months Ended
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Dec. 31, 2022
Debt Disclosure [Abstract] |
Schedule of Carrying Values and Fair Values of Convertible Notes | The carrying amount and fair value of our Convertible Notes were as follows as of the dates indicated (amount in thousands).
|  | December 31, 2022 |  | December 31, 2021
Principal amount: |  |  |  |
2024 Convertible Notes |  | $ | 13,483 |  |  | $ | 90,936 |
2027 Convertible Notes |  | 805,000 |  |  | 805,000 |
2028 Convertible Notes |  | 720,000 |  |  | — |
Total Principal Amount |  | $ | 1,538,483 |  |  | $ | 895,936 |
Unamortized debt discount: |  |  |  |
2024 Convertible Notes |  | $ | (149) |  |  | $ | (1,517) |
2027 Convertible Notes |  | (14,359) |  |  | (17,745) |
2028 Convertible Notes |  | (17,875) |  |  | — |
Total unamortized debt discount |  | $ | (32,383) |  |  | $ | (19,262) |
Carrying amount: |  |  |  |
2024 Convertible Notes |  | $ | 13,334 |  |  | $ | 89,419 |
2027 Convertible Notes |  | 790,641 |  |  | 787,255 |
2028 Convertible Notes |  | 702,125 |  |  | — |
Total carrying amount |  | $ | 1,506,100 |  |  | $ | 876,674 |
Fair value based on trading levels (Level 2): |  |  |  |
2024 Convertible Notes |  | $ | 32,176 |  |  | $ | 159,678 |
2027 Convertible Notes |  | 784,770 |  |  | 718,889 |
2028 Convertible Notes |  | 849,823 |  |  | — |
Total fair value of outstanding notes |  | $ | 1,666,769 |  |  | $ | 878,567 |
Remaining amortization per period of debt discount (in years): |  |  |  |
2024 Convertible Notes |  | 1.9 |  | 2.9
2027 Convertible Notes |  | 4.2 |  | 5.2
2028 Convertible Notes |  | 5.6 |  | n/a
Components of Interest Expense and the Effective Interest Rates | The following table summarizes the components of interest expense and the effective interest rates for each of our Convertible Notes for the periods shown (in thousands).
|  | Twelve Months Ended December 31,
|  | 2022 |  | 2021
Coupon Interest: |  |  |  |
2024 Convertible Notes |  | $ | 771 |  |  | $ | 1,906 |
2027 Convertible Notes |  | 2,013 |  |  | 1,677 |
2028 Convertible Notes |  | 2,660 |  |  | — |
Total Coupon Interest |  | $ | 5,444 |  |  | $ | 3,583 |
Amortization of debt discount: |  |  |  |
2024 Convertible Notes |  | $ | 357 |  |  | $ | 838 |
2027 Convertible Notes |  | 3,386 |  |  | 2,804 |
2028 Convertible Notes |  | 1,124 |  |  | — |
Total amortization of debt discount |  | $ | 4,867 |  |  | $ | 3,642 |
Interest expense: |  |  |  |
2024 Convertible Notes |  | $ | 1,128 |  |  | $ | 2,744 |
2027 Convertible Notes |  | 5,399 |  |  | 4,481 |
2028 Convertible Notes |  | 3,784 |  |  | — |
Total interest expense |  | $ | 10,311 |  |  | $ | 7,225 |
Effective interest rates: |  |  |  |
2024 Convertible Notes |  | 1.8 | % |  | 1.8 | %
2027 Convertible Notes |  | 0.7 | % |  | 0.7 | %
2028 Convertible Notes |  | 1.5 | % |  | n/a
Revolving Credit and Term Loan Facilities (May 2022) In May 2022, in connection with the closing of the Antares acquisition, we entered into a credit agreement, which was subsequently amended, with Bank of America, N.A., as Administrative Agent, Swing Line Lender and an L/C Issuer, and the other lenders and L/C Issuers party thereto (the “2022 Credit Agreement), evidencing a credit facility (the “2022 Facility”) that provides for (i) a $350 million revolving credit facility (the “Revolving Credit Facility”) and (ii) a $250 million term loan facility (the “Term Facility”). Proceeds from a $120 million draw on the Revolving Credit Facility and the $250 million Term Facility were used to fund a portion of the Antares acquisition, repay Antares’ existing debt and pay fees and expenses in connection with the acquisition. The 2022 Credit Agreement contains an expansion feature, which allows us, subject to certain conditions, to increase the aggregate principal amount of the 2022 Facility, provided we remain in compliance with underlying financial covenants on a pro forma basis including the consolidated interest coverage ratio and the consolidated net leverage ratio covenants set forth in the 2022 Credit Agreement. The 2022 Facility will mature on November 30, 2026 unless either the Revolving Credit Facility or the Term Facility is extended prior to such date in accordance with the 2022 Credit Agreement. The Term Facility requires quarterly scheduled repayments of the term loans in each of the first, second, third and fourth years following the Closing in annual amounts equal to 2.50%, 5.00%, 7.50% and 10.00% of the initial principal amount of the term loans, respectively. The term loans are also subject to mandatory prepayments from the proceeds of certain asset sales, subject to our right to reinvest the proceeds thereof. Borrowings under the 2022 Facility bear interest, at our option, at a rate equal to an applicable margin plus: (a) the applicable Term Secured Overnight Financing Rate (SOFR) (which includes a SOFR adjustment of 0.10%), or (b) a base rate determined by reference to the highest of (1) the federal funds effective rate plus 0.50%, (2) the Bank of America prime rate, (3) the Term SOFR rate for an interest period of one month plus 1.10%, and (4) 1.00%. The margin for the 2022 Facility ranges, based on our consolidated total net leverage ratio, from 0.25% to 1.25% in the case of base rate loans and from 1.25% to 2.25% in the case of Term SOFR rate loans. In addition to paying interest on the outstanding principal under the Facility, we will pay (i) a commitment fee in respect of the unutilized commitments thereunder and (ii) customary letter of credit fees and agency fees. The commitment fees range from 0.15% to 0.35% per annum based on our consolidated net leverage ratio. In August 2022, we entered into Amendment No. 1 to the Credit Agreement (the “Amendment”) among the Company, the Guarantors (as defined in the Credit Agreement), each L/C Issuer from time to time party thereto, Bank of America, N.A., as Administrative Agent (in such capacity, the “Administrative Agent”) and swing line lender (in such capacity, the “Swing Line Lender”), and each lender party thereto, which amends the Credit Agreement dated as of May 24, 2022 (the “Credit Agreement”) among the Company, the Guarantors, the Administrative Agent, the Swing Line Lender, each Lender and the L/C Issuers. The Amendment, among other things, increased the size of the revolving credit facility from $350 million to $575 million. The terms of the Revolving Credit Facility are otherwise unchanged. Concurrently with the entry into the Amendment, we repaid the entire outstanding Term Loan Facility and repaid all outstanding loans under the Revolving Credit Facility under the 2022 Credit Agreement. As of December 31, 2022, the Revolving Credit Facility was undrawn. We incurred a total of $3.6 million in third-party costs related to the 2022 Credit Agreement which is recorded as debt issuance cost within prepaid expenses and other assets in the condensed consolidated balance sheets. As of December 31, 2022, the unamortized debt issuance cost related to the revolving credit facility was $3.1 million.
Future Maturities Interest Payments of Long-term Debt | Future maturities and interest payments of long-term debt as of December 31, 2022, are as follows (in thousands):
2023 |  | $ | 22,745 |
2024 |  | 9,213 |
2025 |  | 9,213 |
2026 |  | 9,213 |
2027 |  | 812,535 |
Thereafter |  | 724,480 |
Total minimum payments |  | $ | 1,587,399 |
Less amount representing coupon interest |  | (48,916) |
Gross balance of long-term debt |  | $ | 1,538,483 |
Less unamortized debt discount |  | (32,383) |
Carrying value of long-term debt |  | $ | 1,506,100 |
Less current portion of long-term debt |  | (13,334) |
Long-term debt, less current portion and unamortized debt discount |  | $ | 1,492,766 |

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