Tangible Equity Units (tMEDS)

3 Months Ended

Mar. 31, 2013

Stockholders' Equity Note [Abstract]

Tangible Equity Units (tMEDS)

Tangible Equity Units (tMEDS)

On May 11, 2012, TCM completed a public offering of 8,800,000 tMEDS with a stated value of $25.00 each. Each tMEDS unit consists of a prepaid common stock purchase contract and a senior amortizing note due May 15, 2015. The prepaid common stock purchase contracts were recorded as additional paid-in-capital (a component of shareholders' equity), net of issuance costs, and the senior amortizing notes have been recorded as long-term debt. Issuance costs associated with the debt component were recorded as a prepaid expense, which will be amortized using the straight-line method over the term of the instrument to May 15, 2015. The unamortized prepaid expense related to the tMEDS was $0.9 million as of March 31, 2013. For the three months ended March 31, 2013, TCM paid $0.9 million of interest and had capitalized interest and debt issuance costs of $0.9 million associated with tMEDS.

At any time prior to the third business day immediately preceding May 15, 2015, the holder may settle the purchase contract early. Purchase contracts settled prior to November 10, 2012 were settled at 4.3562, which is 95% of the minimum settlement rate. Purchase contracts settled on or after November 11, 2012 but prior to the third business day preceding May 15, 2015 will be settled for 4.5855, subject in either case to certain adjustments. During the quarter ended March 31, 2013, holders settled 360,000 purchase contracts and TCM issued 1,650,780 shares of common stock.

For purposes of the fair market value disclosed in Note 6, the carrying values of the tMEDS as of March 31, 2013 were higher than the fair values of approximately $21.3 million.