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EXTINGUISHMENT OF DEBT
9 Months Ended
Sep. 30, 2013
Extinguishment of Debt Disclosures [Abstract]  
EXTINGUISHMENT OF DEBT
EXTINGUISHMENT OF DEBT

As described in Note 8 above, in conjunction with the Conversion Event, holders of our Convertible Notes tendered $6.4 million of Convertible Notes in exchange for 0.6 million shares of common stock. As a result of the Conversion Event, during the third quarter of 2013, we wrote-off $0.3 million of previously deferred financing costs, $3.7 million of derivative liabilities, and $0.8 million of unamortized discount. This resulted in a net loss on extinguishment of debt of $1.7 million, which is included on the accompanying condensed consolidated statements of operations.

In connection with the Exchange Offer, described in Note 8 above, we exchanged $48.5 million of Convertible Notes for $61.1 million of 2013 Notes.  As a result of the Exchange Offer, during the first quarter of 2013, we wrote-off $2.4 million of previously deferred financing costs, $26.6 million in derivative liabilities, and $7.3 million of unamortized discount. We recorded a net gain on extinguishment of debt associated with this transaction of $4.3 million on the accompanying condensed consolidated statements of operations.

In connection with the Exchange Offer and the Amendment to the 2012 Credit Agreement, we incurred $2.3 million of deferred financing costs, which are classified as other assets on the accompanying condensed consolidated balance sheets. The deferred financing costs for the Exchange Offer and the Amendment to the 2012 Credit Agreement are being amortized over the term of the 2013 Notes and the 2012 Credit Agreement, respectively, using the straight line method, which approximates the effective interest method.