Senior Secured Notes, Net

3 Months Ended

Mar. 31, 2024

SENIOR SECURED NOTES, NET

As of March 31, 2024, the following senior secured notes, or Senior Secured Notes, were outstanding ($ in thousands):


Senior Secured Notes	Face Value		Interest Rate		All-in Cost(1)		Maturity
Senior Secured Notes	$	339,918	3.75	%	4.02	%	January 15, 2027

(1)Includes transaction expenses that are amortized through interest expense over the life of the Senior Secured Notes.

The transaction expenses on the Senior Secured Notes were $6.3 million, which are amortized into interest expense over the life of the Senior Secured Notes. During the three months ended March 31, 2024, we recorded $3.6 million of interest expense related to our Senior Secured Notes, including $267,000 of amortization of deferred fees and expenses.

During the three months ended March 31, 2024, we repurchased an aggregate principal amount of $26.2 million of the Senior Secured Notes at a weighted-average price of 88%. This resulted in a gain on extinguishment of debt of $3.0 million during the three months ended March 31, 2024. There was no repurchase activity during the three months ended March 31, 2023.

The following table details the net book value of our Senior Secured Notes on our consolidated balance sheets ($ in thousands):


	March 31, 2024		December 31, 2023
Face value	$	339,918	$	366,090
Deferred financing costs	(2,835)		(3,327)
Net book value	$	337,083	$	362,763

The Senior Secured Notes contain the financial covenant that our indebtedness shall not exceed 83.33% of our total assets. As of March 31, 2024 and December 31, 2023, we were in compliance with this covenant. Under certain circumstances, we may, at our option, release all of the collateral securing our Senior Secured Notes, in which case we would also be required to maintain a total unencumbered assets to total unsecured indebtedness ratio of 1.20 or greater. This covenant is not currently in effect as the collateral securing our Senior Secured Notes has not been released.