XML 28 R16.htm IDEA: XBRL DOCUMENT v3.21.2
Debt Obligations
 6 Months Ended
Jun. 30, 2021
Debt Obligations [Abstract]  
DEBT OBLIGATIONS
(9) DEBT OBLIGATIONS


Debt obligations consist of the following: 

 
 
As of
(in thousands)
 
June 30, 2021
 
December 31, 2020
Credit Facility:
 
 
 
 
Revolving credit agreement
 
$
20,800

 
$
270,400

Convertible Debt:
 
 
 
 
0.75% convertible notes, unsecured, due 2049
 
460,136

 
452,228

 
 
 
 
 
1.375% Senior Notes, due 2026
 
711,300

 
732,840

 
 
 
 
 
Other obligations
 
808

 
850

 
 
 
 
 
Total debt obligations
 
1,193,044

 
1,456,318

Unamortized debt issuance costs
 
(15,857
 )
 
(17,932
)
Carrying value of debt
 
1,177,187

 
1,438,386

Short-term debt obligations and current maturities of long-term debt obligations
 
(746
 )
 
(797
)
Long-term debt obligations
 
$
1,176,441

 
$
1,437,589


Credit Facility

On October 17, 2018, the Company entered into an unsecured revolving credit agreement (the "Credit Facility") for $1.0 billion that expires on October 17, 2023. In May 2021, an additional lender joined the Credit Facility which increased the revolving commitment by $30 million. Fees and interest on borrowings are based upon the Company's corporate credit rating and are based, in the case of letter of credit fees, on a margin, and in the case of interest, on a margin over London Inter-Bank Offered Rate (“LIBOR”) or a margin over the base rate, as selected by the Company, with the applicable margin ranging from 1.125% to 2.0% (or 0.175% to 1.0% for base rate loans). The Credit Facility allows for borrowings in Australian dollars, British pounds sterling, Canadian dollars, Czech koruna, Danish krone, euro, Hungarian forints, Japanese yen, New Zealand dollars, Norwegian krone, Polish zlotys, Swedish krona, Swiss francs and U.S. dollars. The Credit Facility contains a $200 million sublimit for the issuance of letters of credit, a $50 million sublimit for U.S. dollar swingline loans, and a $90 million sublimit for certain foreign currencies swingline loans. The Credit Facility contains customary affirmative and negative covenants, events of default and financial covenants. The Company was in compliance with all debt covenants as of June 30, 2021.

Convertible Debt

On March 18, 2019, the Company completed the sale of $525.0 million of Convertible Senior Notes ("Convertible Notes"). The Convertible Notes mature in March 2049 unless redeemed or converted prior to such date, and are convertible into shares of Euronet common stock at a conversion price of approximately $188.73 per share if certain conditions are met (relating to the closing price of Euronet common stock exceeding certain thresholds for specified periods). Holders of the Convertible Notes have the option to require the Company to purchase their notes on each of March 15, 2025, March 15, 2029, March 15, 2034, March 15, 2039 and March 15, 2044 at a repurchase price equal to 100% of the principal amount of the Convertible Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the relevant repurchase date.

In accordance with ASC 470-20-30-27, proceeds from the issuance of convertible debt is allocated between debt and equity components so that debt is discounted to reflect the Company's nonconvertible debt borrowing rate. ASC 470-20-35-13 requires the debt discount to be amortized over the period the convertible debt is expected to be outstanding as additional non-cash interest expense. The allocation resulted in an increase to additional paid-in capital of $99.7 million for the Convertible Notes.

Contractual interest expense for the Convertible Notes was $1.0 million and $2.0 million for the three and six months ended June 30, 2021, respectively, and $1.0 million and $2.0 million for the three and six months ended June 30, 2020, respectively. Accretion expense for the Convertible Notes was $4.0 million and $7.9 million for the three and six months ended June 30, 2021, respectively, and $3.8 million and $7.5 million for the three and six months ended June 30, 2020, respectively. The effective interest rate was 4.4% for the three and six months ended June 30, 2021. As of June 30, 2021, the unamortized discount was $64.9 million and will be amortized through March 2025. 

1.375% Senior Notes due 2026

On May 22, 2019, the Company completed the sale of €600 million ($669.9 million) aggregate principal amount of Senior Notes that expire in May 2026 (the “Senior Notes”). The Senior Notes accrue interest at a rate of 1.375% per year, payable annually in arrears commencing May 22, 2020, until maturity or earlier redemption. As of June 30, 2021, the Company has outstanding €600 million ($711.3 million) principal amount of the Senior Notes. In addition, the Company may redeem some or all of these notes on or after February 22, 2026 at their principal amount plus any accrued and unpaid interest.

Other obligations

Certain of the Company's subsidiaries have available lines of credit and overdraft credit facilities that generally provide for short-term borrowings that are used from time to time for working capital purposes. As of June 30, 2021 and December 31, 2020, borrowings under these arrangements were $0.8 million and $0.9 million, respectively.