Extinguishment of Debt

12 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

Extinguishment of Debt

Extinguishment of Debt

On December 27, 2019, the Company and one of its subsidiaries, MSG, entered into the Sumitomo Pharma Loan Agreement, which is further discussed in Note 6(A). On December 30, 2019, the Company borrowed an initial amount of $113.7 million under the Sumitomo Pharma Loan Agreement, the proceeds of which were used to repay all outstanding obligations to NovaQuest and Hercules and to satisfy certain other fees and expenses, including:

•Repayment of all of the Company’s then outstanding obligations to NovaQuest under the NovaQuest Securities Purchase Agreement, including $60.0 million of principal repayment of the notes, accrued and unpaid interest of $7.6 million, and an early redemption fee of $2.4 million.

•Repayment of all of the Company’s then outstanding obligations to Hercules under the Hercules Loan Agreement, including $40.0 million of principal repayment of the Term Loans, accrued and unpaid interest of $0.3 million, a prepayment penalty of $0.4 million, and an end of term charge of $2.6 million.

The repayments resulted in a loss on extinguishment of debt of $4.9 million, which is included under the caption loss on extinguishment of debt in the accompanying consolidated statements of operations for the year ended March 31, 2020. The loss on extinguishment of debt was calculated as the difference between the carrying amount of the debt and the amounts paid to retire the debt.