Debt Instruments

3 Months Ended

Mar. 31, 2020

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 agreement with the equipment provider for $1.0 million, at an annual interest rate of 5.42% over terms of three years. The additional agreement for December 2019, incorporates the same terms and conditions as those under the Capital Lease Agreement entered into in June 2017.

In January 2020 and March 2020, we entered into additional agreements with the equipment provider for $1.0 million, and $2.3 million, respectively, at an annual interest rate of 5.42% over terms of three years for both agreements. Both the additional agreements incorporate the same terms and conditions as those under the Capital Lease Agreement entered into in June 2017.

As of March 31, 2020 and December 31, 2019, $11.2 million and $9.5 million was outstanding under the Capital Lease Agreement. 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.

Cash Collateralized Revolving Credit Agreement

In November 2019, we entered into a Revolving Credit Agreement for an aggregate commitment amount of $70.0 million with 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, which is classified as restricted cash on our balance sheets.

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 both March 31, 2020 and December 31, 2019, the outstanding balance on the Revolving Credit Agreement was $20.3 million.

The following table reflects the carrying values of the debt and capital lease agreements as of March 31, 2020 and December 31, 2019:



	As of March 31,			As of December 31,
	2020			2019
	(in thousands)
Liability component:
Principal amount—Cash Collateralized Revolving Credit Agreement	$	20,300		$	20,300
Less: unamortized debt issuance costs	(200		)	(219		)
Less: current portion of long-term debt	—			—
Long-term debt, less current portion—Cash Collateralized Revolving Credit Agreement	$	20,100		$	20,081
Principal amount—Capital Lease Agreement	11,234			9,549
Less: current portion of long-term debt	(5,291		)	(4,472		)
Long-term debt, less current portion—Capital Lease Agreement	$	5,943		$	5,077
Total long-term debt, less current portion	$	26,043		$	25,158

Contractual future repayments for our debt and capital lease obligations as of March 31, 2020 are as follows:



	Principal		Interest		Total
	(in thousands)
Remainder of 2020	$	3,704	$	1,867	$	5,571
2021	4,838		2,072		6,910
2022	22,758		21,140		43,898
2023	234		2		236
2024	—		—		—
Thereafter	—		—		—
Total	$	31,534	$	25,081	$	56,615

Interest expense related to debt for the three months ended March 31, 2020 and 2019 was $0.3 million and $1.2 million, respectively.