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Debt | 9 Months Ended
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Mar. 31, 2021
Debt |
Debt | 6. Debt ​ The following is a summary, as of March 31, 2021 and June 30, 2020, respectively, of the components of the Company’s outstanding long-term debt: ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | March 31, 2021 |  | June 30, 2020
​ |  | (in thousands)
​ | ​ | ​ | ​ | ​ | ​ | ​
Convertible Senior Notes due 2027 | ​ | $ | 420,000 | ​ | $ | —
Less: unamortized discount | ​ | ​ | (117,027) | ​ | ​ | —
Less: unamortized debt issuance costs | ​ | ​ | (7,585) | ​ | ​ | —
Total debt | ​ | ​ | 295,388 | ​ | ​ | —
Less: current portion of debt | ​ | ​ | — | ​ | ​ | —
Long-term debt | ​ | $ | 295,388 | ​ | $ | —
​ Convertible Senior Notes due 2027 In August and September 2020, the Company issued $420.0 million aggregate principal amount of 1.125% Convertible Senior Notes due 2027 (“Notes”). The Notes are governed by an indenture (the “Indenture”) between the Company and U.S. Bank National Association, as trustee. The net proceeds from the offering of the Notes were approximately $408.6 million after deducting the underwriting fees and other expenses paid by the Company. The Notes bear interest at a rate of 1.125% per annum, payable semi-annually in arrears on March 1st and September 1st of each year, beginning on March 1, 2021. The Notes will mature on September 1, 2027. The Company recorded coupon interest expense of $1.2 million and $2.8 million, respectively, for the three and nine months ended March 31, 2021. ​ The Company separated the Notes into liability and equity components. The initial carrying amount of the liability component was $294.6 million and was calculated using a discount rate of 6.5%. The discount rate was based on the terms of a similar debt instrument as the Notes without the associated conversion feature. The carrying amount of the equity component representing the conversion option was determined by deducting the fair value of the liability component from the principal amount of the Notes, or $125.4 million. The amount recorded in equity is not subject to remeasurement or amortization. ​ The $125.4 million also represents the initial discount recorded on the Notes. The discount is accreted to interest expense using the effective interest rate method over the contractual term of the Notes. The Company incurred debt issuance costs of $11.4 million. These costs were allocated pro rata to liabilities and equity based upon the initial carrying values attributable to each. The portion of the debt issuance costs allocated to equity is not subject to amortization; while the portion allocated to liabilities is amortized over the contractual term of the Notes. The Company recorded interest expense related to the accretion of the discount and the amortization of the debt issuance costs of $3.6 million and $0.2 million, respectively, during the three months ended March 31, 2021, and $8.3 million and $0.4 million, respectively, during the nine months ended March 31, 2021. Within the next twelve months, the Company will record interest expense related to the accretion of the discount and the amortization of the debt issuance costs of $15.2 million and $0.8 million, respectively. The effective interest rate of the Notes for the three and nine months ended March 31, 2021 was 6.4%. ​ Before June 1, 2027, noteholders will have the right to convert their Notes only upon the occurrence of certain events. After June 1, 2027, noteholders may convert their Notes at any time at their election until two days prior to the maturity date. The Company will settle conversions by paying or delivering cash, shares of its common stock, or a combination of cash and shares of its common stock, at the Company’s election, with an intent to net settle by settling the outstanding principal in cash and conversion spread in shares of its common stock. The initial conversion rate is 18.9109 shares of common stock per $1,000 principal amount of Notes, which represents an initial conversion price of approximately $52.88 per share of common stock (lower strike price). The Notes will be redeemable at the Company’s option at any time after September 6, 2024 at a cash redemption price equal to the principal amount of the Notes, plus accrued and unpaid interest, subject to certain stock price hurdles as discussed in the Indenture. ​ In connection with the Notes, the Company entered into privately negotiated capped call transactions (the “Capped Call Transactions”) with certain counterparties. The Capped Call Transactions are expected to cover the aggregate number of shares of the Company’s common stock that initially underlie the Notes, and are expected to reduce potential dilution to the Company’s common stock upon any conversion of Notes and/or offset any cash payments the Company is required to make in excess of the principal amount of converted Notes. The upper strike price of the Capped Call Transactions is $86.174 per share. The cost of the Capped Call Transactions was $60.4 million and was recorded within additional paid-in capital.

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- Definition The entire disclosure for long-term debt. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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