|6 Months Ended|
Jun. 30, 2020
|Debt Disclosure [Abstract]|
|Financing Arrangements||Financing Arrangements
Please refer to Note 2. Summary of Significant Accounting Policies for additional details regarding covenant compliance.
A summary of our borrowings as of June 30, 2020 and December 31, 2019 is set forth below (in thousands):
(+) This facility is a component of the 2017 Credit Agreement.
(1) As of June 30, 2020, the available balance under our $85.0 million Revolving Credit Facility is $0.0 million (net of outstanding letters of credit). The 2017 Credit Agreement provides for the issuance of letters of credit in the amount equal to the lesser of $15.0 million and the aggregate amount of the then-remaining revolving loan commitment. As of June 30, 2020, we had outstanding letters of credit of $3.9 million under the 2017 Credit Agreement.
(2) The principal amount outstanding of the 2.75% convertible senior notes due 2035 (the “Convertible Notes”) as set forth in the foregoing table was $82.5 million as of June 30, 2020. The carrying amount, net of debt issuance costs and associated discount, was $71.5 million and $71.1 million as of June 30, 2020 and December 31, 2019, respectively.
(3) The principal amount outstanding of the second lien notes due June 30, 2023 (the “Second Lien Notes”) as set forth in the foregoing table was $188.7 million as of June 30, 2020. The value allocated to the attached penny warrants and market warrants for financial reporting purposes was $14.9 million and $9.3 million, respectively. These qualify for classification in stockholders’ equity and are included in the condensed consolidated balance sheets within “Additional paid-in capital”.
(4) As of June 30, 2020, Other debts primarily consisted of (i) $3.4 million remaining financed amount for transponder purchases, which was payable April 2020, and remains unpaid at filing date; and (ii) $17.8 million of finance lease liability relating to an assessed right-of-use over a satellite bandwidth capacity (refer to Note 4. Leases for further details).
The aggregate contractual maturities of all borrowings, including finance leases, subsequent to June 30, 2020 were as follows (in thousands):
Debtor-in-Possession Credit Agreement
The DIP Term Loan Facility is subject to approval by the Bankruptcy Court, which has not been obtained at this time. The Debtors are seeking interim approval of the DIP Term Loan Facility, and are seeking availability of a portion of the DIP Term Loan Facility in the amount not less than $30 million at an interim hearing in the Bankruptcy Court, contemplated to occur promptly after the petition date, and are seeking final approval to access the remaining $50 million available under the DIP Term Loan Facility at a final hearing. The Debtors anticipate that the DIP Credit Agreement will become effective promptly following interim approval of the DIP Term Loan Facility by the Bankruptcy Court. For detailed terms and conditions of the DIP Agreement, see Note 2, Basis of Presentation and Summary of Significant Accounting PoliciesLetter of Credit Reimbursement AgreementOn August 5, 2020, the Company entered into the Letter of Credit Reimbursement Agreement which was discussed in detail in Note 2. Basis of Presentation and Summary of Significant Accounting Policies
The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef