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Long-Term Debt
 12 Months Ended
Dec. 31, 2022
Debt Disclosure [Abstract]  
Long-Term Debt Long-Term Debt
Components of long-term debt were as follows as of December 31, 2022 and 2021:
December 31,
20222021
2021 Senior Secured Notes$289,500 $300,000 
Unamortized discount and issuance costs(16,719)(21,111)
Long-term debt, non-current$272,781 $278,889 
2021 Senior Secured Notes
In December 2021, the Company entered into $300 million of 10.25% secured notes in a private placement to certain institutional buyers. The interest is payable semiannually on June 15 and December 15 of each year, beginning on June 15, 2022. At issuance, the effective interest rate on the notes was 12.14%. The notes will mature on December 15, 2026 unless repurchased or redeemed earlier. The secured notes contain customary covenants restricting the Company’s ability to incur debt, incur liens, make distributions to stockholders, make certain transactions with our affiliates, as well as certain other financial covenants. The Company was in compliance with all covenants as of December 31, 2022.
In accounting for the senior secured notes, unamortized discount and issuance costs were deducted from the carrying value in the consolidated balance sheet. The unamortized discount and issuance costs will be recognized as interest expense over the five-year term of the senior secured notes. The senior secured notes are classified as Level 2 financial instruments, and the fair value of the notes is presented for disclosure purposes only. The Company determined the fair value of the notes is $185 million as of December 31, 2022 based on secondary market quotes.
Interest is paid semi-annually. Accrued interest as of December 31, 2022 was $1.2 million and was recorded within other current liabilities in the Company’s consolidated balance sheets. During the year ended December 31, 2022, $30.0 million and has been paid for interest.
The Company is aware that its outstanding debt securities are currently trading at substantial discounts to their respective principal amounts. In order to reduce future cash interest payments, as well as future amounts due at maturity or upon
redemption, the Company may, from time to time, as it did during the third quarter of 2022, continue to seek to retire or purchase its outstanding debt through cash purchases, in open-market purchases, privately negotiated transactions or otherwise. Such repurchases, if any, will be upon such terms and at such prices as the Company may determine, and will depend on prevailing market conditions, our liquidity requirements, contractual restrictions and other factors. The amounts involved may be material. On September 1, 2022, the Company redeemed $10.5 million of the principal amount of the 2021 Senior Secured Notes which resulted in a gain on extinguishment of debt of $2.6 million as the notes were redeemed for total consideration below par value of the notes. The redemption price was equal to 69.5% of the aggregate principal amount plus accrued and unpaid interest. The redemption also resulted in a decrease of the effective interest rate to 12.09%. The gain is reflected in the interest expense, net in of the Company’s consolidated statement of operations and comprehensive loss for the year ended December 31, 2022.
The following table outlines maturities of the Company’s long-term debt, as of December 31, 2022:
Amount
2023$— 
2024— 
2025— 
2026289,500 
Total$289,500