LONG-TERM DEBT, LETTERS OF CREDIT AND DERIVATIVES (Tables)

9 Months Ended

Sep. 30, 2019

As of September 30, 2019 and December 31, 2018, our long-term debt is summarized as follows (in thousands):



	September 30, 2019		December 31, 2018
	(unaudited)
Credit Facility revolver	$	90,674	$	156,843
Credit Facility term loan¹	49,691		—
Total Credit Facility	140,365		156,843
Convertible debt²	199,963		195,184
Finance lease obligations	5,389		5,356
Total long-term debt and finance lease obligations	345,717		357,383
Less: current portion of long-term debt and finance lease obligations	4,033		569
Total long-term debt and finance lease obligations, less current portion	$	341,684	$	356,814

_________________


1	Comprised of principal amount outstanding, less unamortized discount and issuance costs.


2	Comprised of principal amount outstanding, less unamortized discount and issuance costs. See Convertible Debt section below for additional information.

Credit Facility Financial Covenant Requirements



Fiscal Quarter Ending		Maximum Senior Secured Leverage Ratio
September 30, 2019, December 31, 2019, March 31, 2020, June 30, 2020 and September 30, 2020		2.75 to 1.00
December 31, 2020 and each Fiscal Quarter thereafter		2.50 to 1.00

Fiscal Quarter Ending		Maximum Net Leverage Ratio
March 31, 2020		5.50 to 1.00
June 30, 2020		5.25 to 1.00
September 30, 2020		5.00 to 1.00
December 31, 2020 and each Fiscal Quarter thereafter		4.50 to 1.00

Fiscal Quarter Ending		Minimum Debt Service Coverage Ratio
September 30, 2019		1.10 to 1.00
December 31, 2019, March 31, 2020, June 30, 2020 and September 30, 2020		1.25 to 1.00
December 31, 2020 and each Fiscal Quarter thereafter		1.50 to 1.00

Convertible Debt

The following table sets forth interest expense information related to the Notes (dollars in thousands):



	Three Months Ended September 30,						Nine Months Ended September 30,
	(unaudited)			(unaudited)			(unaudited)			(unaudited)
	2019			2018			2019			2018
Coupon interest	$	2,875		$	2,875		$	8,625		$	8,625
Amortization of debt discount and issuance costs	1,633			1,493			4,778			4,371
Total interest expense on convertible senior notes	$	4,508		$	4,368		$	13,403		$	12,996

Effective interest rate	9.12		%	9.12		%	9.12		%	9.12		%

As of September 30, 2019 and December 31, 2018, the Notes were recorded in our condensed consolidated balance sheets as follows (in thousands):



	September 30, 2019			December 31, 2018
	(unaudited)
Liability component:
Principal	$	230,000		$	230,000
Unamortized issuance costs	(5,033		)	(5,834		)
Unamortized discount	(25,004		)	(28,982		)
Net carrying amount of the liability component¹	$	199,963		$	195,184

Equity component:
Carrying amount of the equity component, net of issuance costs²	$	13,912		$	13,912

_________________


1	Included in the “Long-term debt” line of the condensed consolidated balance sheets.


2	Relates to the portion of the Notes accounted for under ASC 470-20 (defined below) and is included in the “Additional paid-in capital” line of the condensed consolidated balance sheets.

Amounts Recognized In Other Comprehensive Income, Reclassified Into Income (Loss) and Amounts Recognized in Income (Loss)

The amounts recognized in other comprehensive income (loss), reclassified into income (loss) and the amounts recognized in income (loss) for the three and nine months ended September 30, 2019 and 2018, are as follows (in thousands):



	Gain (Loss) Recognized in Other Comprehensive Income (Loss)				Gain (Loss) Reclassified from Other Comprehensive Income (Loss) to Earnings				Gain (Loss) Recognized in Other Comprehensive Income (Loss)				Gain (Loss) Reclassified from Other Comprehensive Income (Loss) to Earnings
	Three Months Ended September 30,				Three Months Ended September 30,				Nine Months Ended September 30,				Nine Months Ended September 30,
	(unaudited)				(unaudited)				(unaudited)				(unaudited)
	2019		2018		2019		2018		2019		2018		2019		2018
Derivatives Classified as Hedging Instruments
Net investment hedge	$	556	$	97	$	—	$	—	$	651	$	464	$	—	$	—

									Gain (Loss) Recognized in Income (Loss)¹
									Three Months Ended September 30,				Nine Months Ended September 30,
									(unaudited)				(unaudited)
									2019		2018		2019		2018
Derivatives Not Classified as Hedging Instruments
Embedded derivative in convertible debt									$	—	$	—	$	—	$	(24,783	)

_________________

1 Reflected as “Loss on convertible debt embedded derivative” in the condensed consolidated statements of operations.

Fair Value Totals and Balance Sheet Classification for Derivatives Designated As Hedges and Derivatives Not Designated as Hedges

The following table presents the fair value totals and balance sheet classification for derivatives designated as hedges and derivatives not designated as hedges under ASC 815 (in thousands):

September 30, 2019

December 31, 2018

(unaudited)

Classification

Balance Sheet

Location

Fair

Value

Classification

Balance Sheet

Location

Fair
Value

Derivatives Classified as Hedging Instruments

Net investment hedge

Liability

Long-term debt

(4,555

)

Liability

Long-term debt

(3,904

)