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Long Term Debt | 6 Months Ended
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Jun. 30, 2021
Debt Disclosure [Abstract] |
Long-term Debt | Long-Term Debt Long-term debt consists of the following:
| June 30, 2021 |  | December 31, 2020
Revolving line of credit | $ | 185,000 |  |  | $ | 207,000 |
Term loan, net of deferred debt issuance costs of $1,373 and $1,668 in 2021 and 2020, respectively | 232,158 |  |  | 240,145 |
2.625% convertible notes, net of deferred debt issuance costs of $4,588 and $5,475 in 2021 and 2020, respectively, and unamortized discount of $28,589 and $33,620 in 2021 and 2020, respectively | 311,823 |  |  | 305,904 |
Financing leases | 695 |  |  | 587 |
Total debt | 729,676 |  |  | 753,636 |
Less: Current portion | 21,868 |  |  | 18,415 |
Total long-term debt | $ | 707,808 |  |  | $ | 735,221 |
On February 7, 2019 we entered into a sixth amended and restated senior credit agreement consisting of: (a) a $265.0 million term loan facility and (b) a $585.0 million revolving credit facility. The revolving credit facility then in effect was due to terminate and the loans outstanding under the term loan facility then in effect were scheduled to mature on the earlier of (i) February 7, 2024 or (ii) 91 days prior to the earliest scheduled maturity date of the 2.625% convertible notes due in 2024 described below, (if, as of such date, more than $150.0 million in aggregate principal amount of such convertible notes (or any refinancing thereof) remained outstanding). The term loan facility was payable in quarterly installments increasing over the term of the facility. Proceeds from the term loan facility and borrowings under the revolving credit facility were used to repay the then existing senior credit agreement and in part to finance the acquisition of Buffalo Filter. On April 17, 2020, we amended our sixth amended and restated senior credit agreement to suspend our required leverage ratios for up to four quarters as a result of the potential impact from the COVID-19 pandemic. On November 20, 2020, we entered into a third amendment under our senior credit agreement to lower the applicable margin on the loans and lower the interest floor on Eurocurrency loans agreed upon in April 2020. On April 15, 2021, we terminated the suspension period, thus reinstating our required leverage ratios. The applicable margin depended upon CONMED’s consolidated senior secured leverage ratio, using the pricing grid set forth in the November 2020 amendment. Interest rates were at LIBOR (subject to 0.125% floor) plus an interest rate margin of 2.50% (2.625% at June 30, 2021). There were $233.5 million in borrowings outstanding on the term loan facility as of June 30, 2021. There were $185.0 million in borrowings outstanding under the revolving credit facility as of June 30, 2021. Our available borrowings on the revolving credit facility at June 30, 2021 were $397.4 million with approximately $2.6 million of the facility set aside for outstanding letters of credit. The sixth amended and restated senior credit agreement was collateralized by substantially all of our personal property and assets. The sixth amended and restated senior credit agreement contained covenants and restrictions which, among other things, required the maintenance of certain financial ratios and restricted dividend payments and the incurrence of certain indebtedness and other activities, including acquisitions and dispositions. We were in full compliance with these covenants and restrictions as of June 30, 2021. We were also required, under certain circumstances, to make mandatory prepayments from net cash proceeds from any issuance of equity and asset sales. On July 16, 2021, we entered into a seventh amended and restated senior credit agreement consisting of: (a) a $233.5 million term loan facility and (b) a $585.0 million revolving credit facility. The revolving credit facility will terminate and the loans outstanding under the term loan facility will expire on the fifth anniversary of the closing date. The term loan is payable in quarterly installments increasing over the term of the facility. Initial interest rates are at LIBOR plus an interest rate margin of 1.75%. For those borrowings where we elect to use the alternate base rate, the initial base rate will be the greatest of (i) the Prime Rate, (ii) the Federal Funds Rate plus 0.50% or (iii) the one-month Adjusted LIBOR plus 1.00%, plus, in each case, an interest rate margin. The seventh amended and restated senior credit agreement contains covenants and restrictions which, among other things, require the maintenance of certain financial ratios and restrict dividend payments and the incurrence of certain indebtedness and other activities, including acquisitions and dispositions. On January 29, 2019, we issued $345.0 million in 2.625% convertible notes due in 2024 (the "Notes"). Interest is payable semi-annually in arrears on February 1 and August 1 of each year, commencing August 1, 2019. The Notes will mature on February 1, 2024, unless earlier repurchased or converted. The Notes represent subordinated unsecured obligations and are convertible under certain circumstances, as defined in the indenture, into a combination of cash and CONMED common stock. The Notes may be converted at an initial conversion rate of 11.2608 shares of our common stock per $1,000 principal amount of Notes (equivalent to an initial conversion price of approximately $88.80 per share of common stock). Holders of the Notes may convert the Notes at their option at any time on or after November 1, 2023 through the second scheduled trading day preceding the maturity date. Holders of the Notes will also have the right to convert the Notes prior to November 1, 2023, but only upon the occurrence of specified events. The conversion rate is subject to anti-dilution adjustments if certain events occur. A portion of the net proceeds from the offering of the Notes were used as part of the financing for the Buffalo Filter acquisition and $21.0 million were used to pay the cost of certain convertible notes hedge transactions as further described below. Our effective borrowing rate for nonconvertible debt at the time of issuance of the Notes was estimated to be 6.14%, which resulted in $51.6 million of the $345.0 million aggregate principal amount of Notes issued, or $39.1 million after taxes, being attributable to equity. For both the three months ended June 30, 2021 and 2020, we have recorded interest expense related to the amortization of debt discount on the Notes of $2.5 million and for the six months ended June 30, 2021 and 2020, we have recorded interest expense related to the amortization of debt discount on the Notes of $5.0 million and $4.8 million, respectively, at the effective interest rate of 6.14%. The debt discount on the Notes is being amortized through February 2024. For both the three months ended June 30, 2021 and 2020, we have recorded interest expense on the Notes of $2.3 million and for both the six months ended June 30, 2021 and 2020, we have recorded interest expense on the Notes of $4.5 million at the contractual coupon rate of 2.625%. In connection with the offering of the Notes, we entered into convertible note hedge transactions with a number of financial institutions (each, an “option counterparty”). The convertible note hedge transactions cover, subject to anti-dilution adjustments substantially similar to those applicable to the Notes, the number of shares of our common stock underlying the Notes. Concurrently with entering into the convertible note hedge transactions, we also entered into separate warrant transactions with each option counterparty whereby we sold to such option counterparty warrants to purchase, subject to customary anti-dilution adjustments, the same number of shares of our common stock. The convertible note hedge transactions are expected generally to reduce the potential dilution upon conversion of the Notes and/or offset any cash payments we are required to make in excess of the principal amount of converted Notes, as the case may be, in the event that the market price per share of our common stock, as measured under the terms of the convertible note hedge transactions, is greater than the strike price of the convertible note hedge transactions, which initially corresponds to the conversion price of the Notes and is subject to anti-dilution adjustments substantially similar to those applicable to the conversion rate of the Notes. If, however, the market price per share of our common stock, as measured under the terms of the warrant transactions, exceeds the strike price ($114.92) of the warrants, there would nevertheless be dilution to the extent that such market price exceeds the strike price of the warrants as noted in Note 7, unless we elect to settle the warrants in cash. The scheduled maturities of long-term debt outstanding at June 30, 2021 are as follows:
Remaining 2021 | $ | 9,937 |
2022 | 24,844 |
2023 | 383,750 |
2024 | 345,000 |
2025 | — |
The above amounts exclude debt discount, deferred debt issuance costs and financing leases.

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