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Related Party
12 Months Ended
Dec. 31, 2021
Related Party Transactions [Abstract]  
Related Party Related Party
KKR Capital Markets, an affiliate of KKR Denali, acted as a joint lead arranger and joint bookrunner for the Credit Agreement. KKR Denali is also one of the Company’s principal stockholders. In 2021, 2020 and 2019, the Company paid $2.3 million, $1.5 million and $2.0 million, respectively, in fees to KKR Capital Markets in connection with the Credit Agreement. See Note 9.
In November 2020 and March 2021, the Company borrowed $150.0 million and $250.0 million under the revolving credit facility, respectively (together, the "Revolving Credit Loans"). A lender of the Revolving Credit Loans is an affiliate of KKR Denali, a principal stockholder of the Company. The Company repaid such Revolving Credit Loans in full with the net proceeds from the IPO in April 2021. See Note 9.
In December 2021, the Company completed a secondary offering of 7,500,000 shares of its Class A common stock, at a price of $83.00 per share, with all shares offered by certain of the Company's stockholders, including KKR Denali. The Company incurred a payable of $5.0 million to KKR Capital Markets in connection with the secondary offering, which was included in accounts payable on the Company's consolidated balance sheet as of December 31, 2021.
In December 2019, the Company purchased 2,475,000 shares and 300,000 shares of the Company’s Class A Common Stock from the Company’s chief executive officer and from the Company’s Board member, respectively. The chief executive officer is also the Company’s principal stockholder. The fair value of the purchased shares was $14.0 million. The purchase of shares was paid through the issuance of two unsecured 5-year promissory notes with the principal
amount of $10.0 million and $1.2 million, respectively. The promissory notes are redeemable upon the earlier of maturity, (ii) immediately prior to an acquisition of the Company as defined in the Company’s 2011 Equity Incentive Plan, or (iii) immediately prior to the Company’s filing an S-1 with the Securities and Exchange Commission. The promissory notes bear interest at a rate of 2% per annum paid annually. Both promissory notes were recorded in other non-current liabilities at the aggregated initial fair value of $9.1 million representing a discount of 19% to its principal amount and resulting in a purchase of the Company’s common stock shares below its fair value. The discount is amortized over a period of five years under the effective interest method with amortization expense included in interest expense. The shares of the Company’s Class A Common Stock purchased in exchange for the issuance of the promissory note were added to the pool of shares available for the grant under the Company’s 2011 Equity Incentive Plan. The Company recorded the difference between fair value of the shares purchased and the fair value of promissory notes as an increase to additional paid-in capital. In December 2021, the Company repaid both promissory notes and recognized a loss on debt extinguishment of $1.4 million based on the difference between the $11.7 million repayment amount and the carrying value of such promissory notes on the settlement date. The interest expense recognized on this note was not material for the years ended December 31, 2021, 2020, and 2019.
The Company published a mobile game app developed by a mobile game developer owned by a member of the Company's Board, under a game assignment and revenue share agreement entered in October 2020. Under such agreement, the Company made payments to the mobile game developer in the amount of $0.7 million during the year ended December 31, 2021. Payments for the year ended December 31, 2020 was not material.
The Company had no other material related party transactions for the years ended December 31, 2021, 2020, and 2019.