Debt Instruments

12 Months Ended

Dec. 31, 2019

Loan and Security Agreement

In July 2013, we entered into a Loan and Security Agreement (the "Facility") with a bank related to an equipment facility providing us with an equipment line for advances of up to $2.5 million. The Facility was amended in September 2013 to increase the equipment line for advances up to $5.0 million (as amended, the "Prior Loan Agreement"), November 2014 to increase the equipment line for advances up to $15.0 million, and August 2016 to increase the equipment line for advances up to $17.5 million and allowed for reborrowing of amounts repaid under the equipment loan (as amended, the "Senior Loan Agreement"). The Senior Loan Agreement was additionally amended in February 2017 and March 2017, which extended the draw period to January 2018.

In November 2017, we entered into a Second Amended and Restated Loan and Security Agreement, which amended the Senior Loan Agreement and increased the additional equipment line for advances up to an aggregate of $30.0 million through November 2018. As of December 31, 2018, $29.2 million had been drawn on this Second Amended and Restated Loan and Security Agreement. The interest rate associated with each advance under the Senior Loan Agreement was 1.75% above the floating prime rate. Beginning November 2018, we were obligated to make equal monthly payments of principal plus interest with repayment no later than November 1, 2021.

On November 4, 2019, the outstanding loan of $20.0 million, which was due and payable on November 1, 2021, was paid in full, in accordance with the terms of the agreement.

Capital Lease Agreement

In June 2017, we entered into a Capital Lease Agreement with an equipment provider for $5.0 million in network equipment, at an annual interest rate of 5.24% over a term of four years. In March 2018, we entered into an additional agreement with the equipment provider for $0.5 million in network equipment at an annual interest rate of 5.38% over a term of four years. In February 2019 and March 2019, we entered into additional agreements with the equipment provider for $2.9 million and $1.3 million, respectively, in network equipment, at an annual interest rate of 5.38% over terms of three years. In August 2019, we entered into an additional agreement with the equipment provider for $1.3 million in network equipment at an annual interest rate of 6.33% over a term of three years. In November 2019, we entered into an additional capital lease agreement with the equipment provider for $2.2 million in network equipment at an annual interest rate of 5.69% over a term of three years. In December 2019, we entered into an additional capital lease agreement with the equipment provider for $1.0 million in network equipment at an annual interest rate of 5.42% over a term of three years. The agreement provides for a bargain purchase price at the end of the term. The amortization of leased assets is included in depreciation and amortization expense. The additional agreements incorporate the same terms and conditions as those under the Capital Lease Agreement entered into in June 2017. As of December 31, 2019 and December 31, 2018, $9.5 million and $3.5 million was outstanding under the Capital Lease Agreement.

Credit Facility

In December 2018, we entered into a Second Lien Credit Agreement under which were permitted to borrow up to $30.0 million ("Credit Facility"). As part of this agreement, the Second Amendment to Amended and Restated Loan was amended to allow for this additional indebtedness. The advances under the Credit Facility were subject to interest at a rate of prime plus 4.25%. As of December 31, 2018, $20.0 million had been drawn on this Credit Facility. On July 8, 2019, the $20.0 million outstanding loan, which was due and payable on December 24, 2021, was paid in full, in accordance with the terms of the Credit Facility. Upon payment, the Credit Facility was closed.

Cash Collateralized Revolving Credit Agreement ("Revolving Credit Agreement")

In November 2019, we entered into a Revolving Credit Agreement for an aggregate commitment amount of $70.0 million and a maturity date of November 3, 2022. The amount of borrowings available under the Revolving Credit Agreement at any time are collateralized by our cash.

The interest rate associated with each advance under the Revolving Credit Agreement is equal to the sum of LIBOR for the applicable interest period plus 1.50%, which is a per annum rate based on outstanding borrowings. The commitment fee is 0.20% per annum based on the average daily unused amount of the commitment amount. Interest payments on outstanding borrowings are due on the last day of each interest period and payments for the commitment fee are due at the end of each calendar quarter. As of December 31, 2019, $20.3 million had been drawn on the Revolving Credit Agreement.

The following table reflects the carrying values of the debt agreements as of December 31, 2019 and December 31, 2018:



	As of December 31,
	2019			2018
	(in thousands)
Liability component:
Principal amount—Cash Collateralized Revolving Credit Agreement	$	20,300		$	—
Less: unamortized debt issuance costs	(219		)	—
Less: current portion of long-term debt	—			—
Long-term debt, less current portion—Cash Collateralized Revolving Credit Agreement	$	20,081		$	—
Principal amount—Second Amendment to Amended and Restated Loan and Security Agreement	—			49,167
Less: unamortized debt issuance costs	—			(1,896		)
Less: current portion of long-term debt	—			(10,000		)
Long-term debt, less current portion—Second Amendment to Amended and Restated Loan and Security Agreement	$	—		$	37,271
Principal amount—Capital Lease Agreement	9,549			3,538
Less: current portion of long-term debt	(4,472		)	(1,370		)
Long-term debt, less current portion—Capital Lease Agreement	$	5,077		$	2,168
Total long-term debt, less current portion	$	25,158		$	39,439

Contractual future repayments for the above as of December 31, 2019 are as follows:



	Principal		Interest		Total
	(in thousands)
2020	$	4,472	$	1,210	$	5,682
2021	3,759		992		4,751
2022	21,618		794		22,412
2023	—		—		—
Total	$	29,849	$	2,996	$	32,845

Interest expense related to debt for the years ended December 31, 2019, 2018, and 2017 was $5.2 million, $1.9 million, and $1.1 million, respectively.