Unsecured Senior Notes

3 Months Ended

Mar. 31, 2020

10. Unsecured Senior Notes

The following table is a summary of our unsecured senior notes outstanding as of March 31, 2020 and December 31, 2019 (dollars in thousands):


						Remaining
	Coupon		Effective		Maturity	Period of		Carrying Value at
	Rate		Rate (1)		Date	Amortization		March 31, 2020		December 31, 2019
2021 Senior Notes (February)	3.63	%	3.89	%	2/1/2021	0.8	years	$	500,000	$	500,000
2021 Senior Notes (December)	5.00	%	5.32	%	12/15/2021	1.7	years		700,000		700,000
2023 Convertible Notes	4.38	%	4.86	%	4/1/2023	3.0	years		250,000		250,000
2025 Senior Notes	4.75	%	5.04	%	3/15/2025	5.0	years		500,000		500,000
Total principal amount									1,950,000		1,950,000
Unamortized discount—Convertible Notes									(3,352)		(3,610)
Unamortized discount—Senior Notes									(11,038)		(12,144)
Unamortized deferred financing costs									(5,026)		(5,624)
Carrying amount of debt components								$	1,930,584	$	1,928,622
Carrying amount of conversion option equity components recorded in additional paid-in capital for outstanding convertible notes								$	3,755	$	3,755

(1)	Effective rate includes the effects of underwriter purchase discount and the adjustment for the conversion option on our Convertible Notes, the value of which reduced the initial liability and was recorded in additional paid-in-capital.

Convertible Senior Notes

We recognized interest expense of $3.0 million and $3.2 million during the three months ended March 31, 2020 and 2019, respectively, from our unsecured Convertible Notes.

The following table details the conversion attributes of our Convertible Notes outstanding as of March 31, 2020:


	March 31, 2020
	Conversion	Conversion
	Rate (1)	Price (2)
2023 Convertible Notes	38.5959	$	25.91

(1)	The conversion rate represents the number of shares of common stock issuable per $1,000 principal amount of Convertible Notes converted, as adjusted in accordance with the indentures governing the Convertible Notes (including the applicable supplemental indentures).

(2)	As of March 31, 2020 and 2019, the market price of the Company’s common stock was $10.25 and $22.35 per share, respectively.

The if-converted value of the 2023 Convertible Notes was less than their principal amount by $151.1 million at March 31, 2020 as the closing market price of the Company’s common stock of $10.25 was less than the implicit conversion price of $25.91 per share. The if-converted value of the principal amount of the 2023 Convertible Notes was $98.9 million as of March 31, 2020.