Debt And Interest Expense

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Debt And Interest Expense

Debt

Senior Notes

The following table summarizes information related to our Senior notes:

	Issuance Date	Maturity Date	Interest Rate		Principal
					As of December 31,
					2021		2020
					(in thousands except interest rates)
Senior notes due 2023	April 16, 2013	May 1, 2023	4.625	%	$	—	$	750,000
Senior notes due 2025	March 27, 2015	April 1, 2025	5.250	%	500,000		500,000
Senior notes due 2027	July 5, 2017	July 15, 2027	4.750	%	550,000		550,000
Senior notes due 2031	June 8, 2021	June 15, 2031	2.700	%	750,000		—
Principal amount of senior notes					1,800,000		1,800,000
Less: unamortized issuance costs					(14,291)		(9,917)
Total senior notes					$	1,785,709	$	1,790,083

On June 8, 2021, the Company issued $750.0 million of 2.700% senior unsecured notes due 2031. The 2031 Notes were issued at 99.712% of par value. The total discount and issuance costs of $8.9 million are presented on the balance sheet as a reduction of the debt obligation and are being amortized to Interest expense over the 10-year term of the notes. The 2025 and 2027 notes were issued at par and all outstanding senior notes are senior unsecured obligations of the Company. Interest is payable on each of the senior notes semi-annually. Each of the senior notes issuances is redeemable, in whole or in part, at the Company’s option at times and redemption prices specified in the indentures.

On June 23, 2021, the Company used the net proceeds from the 2031 Notes and cash on hand, to redeem all of its $750.0 million aggregate principal amount of outstanding 4.625% senior notes due 2023 (“2023 Notes”). The redemption of the 2023 Notes resulted in a loss on debt extinguishment of $2.1 million related to the unamortized debt issuance costs on the notes. The loss on extinguishment is included in Non-operating loss (income), net in 2021.

2019 Credit Facility

On December 12, 2019, the Company entered into a credit agreement for a $200.0 million committed unsecured revolving credit facility (the “2019 Credit Facility”). The 2019 Credit Facility includes a financial covenant requiring that the Company’s leverage ratio not exceed 4.0 to 1.0. As of December 31, 2021, there were no borrowings outstanding under the facility and the Company was in compliance with the financial covenants. The 2019 Credit Facility was amended in December 2021 to address the LIBOR transition. The 2019 Credit Facility expires on December 12, 2024 at which time any outstanding borrowings are due. Verisign may from time to time request lenders to agree on a discretionary basis to increase the commitment amount by up to an aggregate of $150.0 million.