Subsequent Events

9 Months Ended

Sep. 30, 2022

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

In October 2022, the Company entered into an agreement to acquire real estate in Malaysia, including land and building to be constructed thereon (“the Malaysia Purchase Agreement”). The building is expected to be completed no later than January 1, 2024, at which time the Company will have the option to purchase or lease the real estate. If the Company decides to lease the real estate, it will have the option to purchase the property at any point after the commencement date of the lease and is contractually obligated to purchase the property nine months after the commencement date of the lease. Upon entering into the Malaysia Purchase Agreement, the Company made an upfront payment of $4.0 million. Total undiscounted future lease payments, including the price to purchase the asset, are approximately $15.9 million.

In August 2022, the Company entered into a $20 million uncommitted letter of credit facility. In October 2022, concurrently with the execution of the Malaysia Purchase Agreement, a $16.1 million letter of credit was issued under this facility to backstop a bank guarantee for the same amount. The bank guarantee serves as security for the building while under construction until the Company purchases the property. The Company pays interest on outstanding borrowings and commitment fees on the maximum amount available to be drawn under the letter of credit at a rate of between 1.65% and 2.25%, depending on the Company’s credit rating. The letter of credit includes customary covenants, none of which are considered restrictive to the Company’s operations.