Long-Term Debt

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

Long-Term Debt

Long-Term Debt

Components of long-term debt were as follows as of March 31, 2022 and December 31, 2021:

	March 31,		December 31,
	2022		2021
2021 Senior Secured Notes	$	300,000	$	300,000
Unamortized discount and issuance costs	(20,287)		(21,111)
Net carrying amount	$	279,713	$	278,889
Current portion of long-term debt	$	—	$	—
Non-current portion of long-term debt	$	279,713	$	278,889

2021 Senior Secured Notes

In December 2021, the Company entered into a $300 million 10.25% secured notes in a private placement to certain institutional buyers. The interest is payable semiannually on June 15 and December 15 of each year, beginning on June 15, 2022. The effective interest rate on the notes is 12.14%. The notes will mature on December 15, 2026 unless repurchased or redeemed earlier. The secured notes contain customary covenants restricting the Company’s ability to incur debt, incur liens, make distributions to stockholders, make certain transactions with our affiliates, as well as certain other financial covenants. The Company was in compliance with all covenants as of March 31, 2022.

In accounting for the senior secured notes, unamortized discount and issuance costs were deducted from the carrying value in the condensed consolidated balance sheet. Issuance costs will be recognized as interest expense over the five-year term of the senior secured notes. The senior secured notes are classified as Level 2 financial instruments, and its fair value is presented for disclosure purposes only. The Company determined the fair value of the notes is $261 million as of March 31, 2022 based on secondary market quotes.

Interest is paid semi-annually. Accrued interest as of March 31, 2022 was $8.8 million, and was recorded within other current liabilities in the Company’s condensed consolidated balance sheets. No cash has been paid for interest as of March 31, 2022.

The following table outlines maturities of the principle related to the Company’s long-term debt, including the current portion, as of March 31, 2022:

	Amount
2022 (excluding the three months ended March 31, 2022)	$	—
2023	—
2024	—
2025	—
2026	300,000
Total	$	300,000