Senior Secured Notes, Net

9 Months Ended

Sep. 30, 2023

SENIOR SECURED NOTES, NET

As of September 30, 2023, the following Senior Secured Notes, were outstanding ($ in thousands):


Senior Secured Notes	Face Value		Interest Rate		All-in Cost(1)		Maturity
Senior Secured Notes	$	366,590	3.75	%	4.02	%	January 15, 2027

(1)Includes transaction expenses that are amortized through interest expense over the life of the Senior Secured Notes.

The transaction expenses on the Senior Secured Notes were $6.3 million, which are amortized into interest expense over the life of the Senior Secured Notes. During the three and nine months ended September 30, 2023, we recorded $3.9 million and $12.0 million, respectively, of interest expense related to our Senior Secured Notes, including $288,000 and $882,000, respectively, of amortization of deferred fees and expenses.

During the three months ended September 30, 2023, we repurchased an aggregate principal amount of $33.4 million of the Senior Secured Notes at a weighted-average price of 85%. This resulted in a gain on extinguishment of debt of $4.5 million during both the three and nine months ended September 30, 2023. There was no repurchase activity in the three and nine months ended September 30, 2022.

The following table details the net book value of our Senior Secured Notes on our consolidated balance sheets ($ in thousands):


	September 30, 2023		December 31, 2022
Face value	$	366,590	$	400,000
Deferred financing costs	(3,609)		(4,834)
Net book value	$	362,981	$	395,166

The Senior Secured Notes contain the financial covenant that our indebtedness shall not exceed 83.33% of our total assets. As of September 30, 2023 and December 31, 2022, we were in compliance with this covenant. Under certain circumstances, we may, at our option, release all of the collateral securing our Senior Secured Notes, in which case we would also be required to maintain a total unencumbered assets to total unsecured indebtedness ratio of 1.20 or greater. This covenant is not currently in effect as the collateral securing our Senior Secured Notes has not been released.