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Borrowings | 3 Months Ended
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Mar. 31, 2023
Debt Disclosure [Abstract] |
Borrowings | 9. Borrowings Amended Credit Agreement On February 3, 2021, the Company announced the closing of a new undrawn $125.0 million senior secured revolving credit facility through Truist Bank (the “Amended Credit Agreement”). The Amended Credit Agreement replaced the Company’s prior senior secured credit facility, which included an undrawn $30.0 million revolving credit facility. On December 29, 2021, the Company increased its existing senior secured credit facility by $60.0 million to provide for a $185.0 million revolving credit facility in favor of Hawk Parent pursuant to an amendment to the Amended Credit Agreement. The revolving credit facility is guaranteed by Repay Holdings Corporation and certain of its subsidiaries. On February 9, 2023, the Company further amended the Amended Credit Agreement to replace London Inter-bank Offer Rate (“LIBOR”) with term Secured Overnight Financing Rate (“SOFR”) as the interest rate benchmark. On February 28, 2023, the Company repaid in full the entire amount of $20.0 million of the outstanding revolving credit facility. The undrawn capacity of the existing revolving credit facility under the Amended Credit Agreement became $185.0 million after the repayment. As of March 31, 2023, the Company had $0 drawn against the revolving credit facility. The Compan y paid $0.1 million and $0.2 million in fees related to unused commitments for the three months ended March 31, 2023 and 2022, respectively. The Company’s interest expense on the revolving credit facility tot aled $0.2 million and $0.1 million for three months ended March 31, 2023 and 2022, respectively. The Company was in compliance with its restrictive covenants under the Amended Credit Agreement at March 31, 2023. Convertible Senior Debt On January 19, 2021, the Company issued $440.0 million in aggregate principal amount of 0.00% Convertible Senior Notes due 2026 in a private placement. The conversion rate of any 2026 Notes was 29.7619 shares of Class A common stock per $1,000 principal amount of 2026 Notes (equivalent to an initial conversion price of approximately $33.60 per share of Class A common stock). Upon conversion of the 2026 Notes, the Company may choose to pay or deliver cash, shares of the Company’s Class A common stock, or a combination of cash and shares of the Company’s Class A common stock. The 2026 Notes will mature on February 1, 2026, unless earlier converted, repurchased or redeemed. Subject to Nasdaq requirements, the Company controls the conversion rights prior to November 3, 2025, unless a fundamental change or an event of default occurs. During the three months ended March 31, 2023, the conversion contingencies of the 2026 Notes were not met, and the conversion terms of the 2026 Notes were not significantly changed. The following table summarizes the total borrowings under the Amended Credit Agreement and 2026 Notes:
($ in thousands) |  | March 31, 2023 |  |  | December 31, 2022 |
Non-current indebtedness: |  |  |  |  |  |
Revolving Credit Facility (1) |  | $ | — |  |  | $ | 20,000 |
Convertible Senior Debt |  |  | 440,000 |  |  |  | 440,000 |
Total borrowings |  |  | 440,000 |  |  |  | 460,000 |
Less: Long-term loan debt issuance cost (2) |  |  | 7,969 |  |  |  | 8,681 |
Total non-current borrowings |  | $ | 432,031 |  |  | $ | 451,319 |
(1) The revolving credit facility bears interest at a variable rate, which was 6.63% as of December 31, 2022. (2) The Company incurr ed $0.7 million of in terest expense for the amortization of deferred debt issuance costs for the three months ended March 31, 2023. The Company incurred $2.8 million of interest expense for the amortization of deferred debt issuance costs for the year ended December 31, 2022. The following is a summary of principal maturities of long‑term debt for each of the next five years ending December 31 and in the aggregate:
($ in thousands) |  |  |
2023 |  | $ | — |
2024 |  |  | — |
2025 |  |  | — |
2026 |  |  | 440,000 |
2027 |  |  | — |
|  | $ | 440,000 |

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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 https://asc.fasb.org/topic&trid=2208564 + Details
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