Tangible Equity Units (tMEDS)

6 Months Ended

Jun. 30, 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, which bear interest at 11.68% per annum, were recorded as long-term debt. Issuance costs associated with the debt component were recorded as deferred financing costs within Prepaid expenses and other current assets on the Condensed Consolidated Balance Sheets, and are being amortized using the straight-line method over the term of the instrument to May 15, 2015. The unamortized deferred financing costs related to the tMEDS were $0.8 million as of June 30, 2013. For the three and six months ended June 30, 2013, TCM paid $0.8 million and $1.7 million, respectively, in interest and capitalized interest and debt issuance costs of $0.9 million and $1.8 million, respectively, associated with tMEDS. For the three and six months ended June 30, 2012, TCM capitalized interest and debt issuance costs of $0.6 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 shares, 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 shares, subject in either case to certain adjustments. During the three and six months ended June 30, 2013, holders settled 100,000 and 460,000 purchase contracts, respectively, and TCM issued 458,550 and 2,109,330 shares of common stock, respectively. No purchase contracts were settled and no shares of common stock were issued relating to the tMEDS during 2012.

For purposes of the fair market value disclosed in Note 6, the carrying values of the tMEDS as of June 30, 2013 were higher than the fair values of approximately $19.5 million.