XML 28 R18.htm IDEA: XBRL DOCUMENT
v3.23.2

Subordinated Debentures and Convertible Notes | 6 Months Ended
--- | ---
Jun. 30, 2023
Subordinated Borrowings [Abstract] |
Subordinated Debentures and Convertible Notes | Convertible Notes and Subordinated Debentures Convertible Notes In 2018, the Company issued $217.5 million aggregate principal amount of 2.00% convertible senior notes maturing on May 15, 2038, in a private offering to qualified institutional buyers under Rule 144A of the Securities Act of 1933. The convertible notes are not capital instruments but can be converted into shares of the Company’s common stock at an initial rate of 45.0760 shares per $1,000 principal amount of the notes (equivalent to an initial conversion price of approximately $22.18 per share of common stock, which represented a premium of 22.50% to the closing stock price on the date of the pricing of the notes). Holders of the convertible notes have the option to convert all or a portion of the notes at any time on or after February 15, 2023. The convertible notes can be called by the Company, in part or in whole, on or after May 20, 2023, for 100% of the principal amount in cash. Holders of the convertible notes have the option to put the notes back to the Company on May 15, 2023, May 15, 2028, or May 15, 2033 for 100% of the principal amount in cash. The convertible notes can be settled in cash, stock, or a combination of stock and cash at the option of the Company. On May 15, 2023, most of the Company’s holders of the convertible notes elected to exercise their optional put right and the Company paid off $197.1 million principal amount of notes in cash. In addition, during the three and six months ended June 30, 2023, the Company repurchased its notes in the aggregate principal amount of $9.2 million and $19.9 million, respectively, and recorded a gain on debt extinguishment of $169 thousand and $405 thousand, respectively. The repurchased notes were immediately cancelled subsequent to the repurchase. These repurchases are separate from the optional put and were made through a third-party broker. The value of the convertible notes at issuance and the carrying value at June 30, 2023 and December 31, 2022, are presented in the tables below:
|  | Capitalization Period |  | Gross Carrying Amount |  | June 30, 2023
|  |  |  | Total Capitalization |  | Carrying Amount
|  |  |  | (Dollars in thousands)
Convertible notes principal balance |  |  |  | $ | 444 |  |  |  |  | $ | 444 |
Issuance costs to be capitalized |  | 5 years |  | — |  |  | $ | — |  |  | — |
Carrying balance of convertible notes |  |  |  | $ | 444 |  |  | $ | — |  |  | $ | 444 |
|  | Capitalization Period |  | Gross Carrying Amount |  | December 31, 2022
|  |  |  | Total Capitalization |  | Carrying Amount
|  |  |  | (Dollars in thousands)
Convertible notes principal balance |  |  |  | $ | 217,500 |  |  |  |  | $ | 217,500 |
Issuance costs to be capitalized |  | 5 years |  | (4,119) |  |  | $ | 3,767 |  |  | (352) |
Carrying balance of convertible notes |  |  |  | $ | 213,381 |  |  | $ | 3,767 |  |  | $ | 217,148 |
Interest expense on the convertible notes for the three and six months ended June 30, 2023, totaled $598 thousand and $1.9 million, respectively. Interest expense on the convertible notes for the three and six months ended June 30, 2022 totaled $1.3 million and $2.6 million, respectively.

X
- References No definition available. + Details
Name: | us-gaap_SubordinatedBorrowingsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for borrowings under subordinated debt agreements that qualify as available in computing net capital under SEC's uniform net capital rule, including restrictive covenants, collateral, interest rates and due dates, amounts due by date and amount owed in total. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 942 -SubTopic 470 -Name Accounting Standards Codification -Section 45 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480876/942-470-45-1 + Details
Name: | us-gaap_SubordinatedBorrowingsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration