Debt

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

DEBT

DEBT

On January 24, 2023, the Company issued $75 million aggregate principal amount of 5.50% Convertible Senior Notes due 2028 (the “Notes”). The Notes are general senior unsecured obligations of the Company and will mature on February 1, 2028, unless earlier redeemed, repurchased or converted. The Notes will bear interest from January 24, 2023, at a rate of 5.50% per annum payable semiannually in arrears on February 1 and August 1 of each year, beginning August 1, 2023.

The Notes are convertible into shares of the Company’s common stock at an initial conversion price of approximately $42.36 per share, which represents a premium of approximately 20% to the $35.30 per share closing market price of the common stock on January 19, 2023.

The proceeds from the issuance of the Notes are presented under the long term liabilities of our condensed consolidated balance sheet. The net proceeds from the issuance of the Notes were approximately $72.2 million, after deducting underwriting discounts and other offering expenses. The Company intends to use the net proceeds from this offering to fund working capital needs and for general corporate purposes. As of March 31, 2023, the outstanding principal balance of the Notes was $75 million. The Company is in compliance with all covenants under the indenture governing the Notes.

As of March 31, 2023, the future minimum payments for interest on our outstanding convertible debt for the next five years are as follows:

Year Ending	Minimum Interest Payments
2023	$	2,154
2024	$	4,125
2025	$	4,125
2026	$	4,125
2027	$	4,125