Financing Arrangements |
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| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Financing Arrangements |
Financing Arrangements
A summary of our borrowings as of June 30, 2019 and December 31, 2018 is set forth below (in thousands):
(+) This facility is a component of the 2017 Credit Agreement (as defined below).
(1) As of June 30, 2019, the available balance under our $85.0 million revolving credit facility is $38.9 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, 2019, we had outstanding letters of credit of $3.7 million under the 2017 Credit Agreement. We expect to draw on the loans under our revolving credit facility (the “2017 Revolving Loans”) from time to time to fund our working capital needs and for other general corporate purposes.
(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, 2019,. The carrying amount, net of debt issuance costs and associated discount, was $70.8 million and $70.4 million as of June 30, 2019 and December 31, 2018, 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 $168.0 million as of June 30, 2019. The carrying amount, net of debt issuance costs and associated discount, was $138.6 million and $128.2 million as of June 30, 2019 and December 31, 2018, respectively, and it includes approximately $9.5 million of PIK interest converted to principal during the six months ended June 30, 2019). 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, 2019, Other debts primarily consisted of (i) $6.2 million remaining financed amount for transponder purchases (payable in staggered dates until April 2020); (ii) $3.1 million advance against future dividends from a related party (refer to Note 9. Related Party Transactions for further details), and (iii) $19.1 million of finance lease liability relating to an assessed right-of-use over a satellite bandwidth capacity (refer to Note 3. Leases for further details).
On July 19, 2019, the Company entered into an amendment to the 2017 Credit Agreement and security agreement (the “2017 Credit Agreement Amendment”), which, among other things, upsized the existing senior secured term loan due in 2023 (the “Term Loan”) by $40 million, reduced scheduled principal repayments over the next six quarters by an aggregate amount of approximately $26 million and provided additional stock pledges (including the remaining 35% of the equity interests of first tier foreign subsidiaries that was previously not pledged) as collateral. Net of fees and expenses of approximately $5.5 million, the 2017 Credit Agreement Amendment will result in approximately $61 million of incremental liquidity over the next 18 months. Concurrently with entering into the 2017 Credit Agreement Amendment, the Company also entered into a second amendment to the securities purchase agreement and amendment to security agreement (the “Second Lien Amendment”) relating to the Second Lien Notes, which, among other things, removed the ability to make any cash interest payments under the Second Lien Notes so long as such payments are prohibited by the terms of the 2017 Credit Agreement, added collateral for the Second Lien Notes consistent with the additional collateral provided under the 2017 Credit Agreement and modified the prepayment premium schedule. See Note 17 Subsequent Event for more information.
The aggregate contractual maturities of all borrowings subsequent to June 30, 2019, factoring in the amendment to its term loan, are as follows (in thousands):
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