XML 29 R17.htm IDEA: XBRL DOCUMENT v3.23.1
Long-term Debt
 3 Months Ended
Mar. 31, 2023
Debt Disclosure [Abstract]  
Long-term Debt Long-term Debt 
The Company’s total indebtedness as of March 31, 2023 and December 31, 2022 consisted of the following:
Debt Instrument (defined below, as applicable)March 31, 2023December 31, 2022
(Dollars in millions)
3.250% Convertible Senior Notes due March 2028 (2028 Convertible Notes)
$320.0 $320.0 
Finance lease obligations25.0 23.6 
Less: Debt issuance costs(9.4)(9.8)
335.6 333.8 
Less: Current portion of long-term debt13.2 13.2 
Long-term debt$322.4 $320.6 
During 2022, the Company utilized various methods allowable or required under its then-existing debt agreements to retire all of its senior secured long-term debt, leaving only its unsecured 3.250% Convertible Senior Notes due 2028 (the 2028 Convertible Notes), which are further described below, and various finance lease obligations outstanding at December 31, 2022.
2028 Convertible Notes
On March 1, 2022, through a private offering, the Company issued the 2028 Convertible Notes in the aggregate principal amount of $320.0 million. The 2028 Convertible Notes are senior unsecured obligations of the Company and are governed under an indenture.
The Company used the proceeds of the offering of the 2028 Convertible Notes and available cash to redeem $62.6 million of senior secured notes maturing in 2024 and $257.4 million of senior secured notes maturing in 2025, and to pay related premiums, fees and expenses relating to the offering and redemptions. The Company capitalized $11.2 million of debt issuance costs related to the offering and recognized a loss on early debt extinguishment of $23.0 million during the three months ended March 31, 2022.
The 2028 Convertible Notes will mature on March 1, 2028, unless earlier converted, redeemed or repurchased in accordance with their terms. The 2028 Convertible Notes will bear interest from March 1, 2022 at a rate of 3.250% per year payable semi-annually in arrears on March 1 and September 1 of each year, beginning on September 1, 2022.
During the first quarter of 2023, the Company’s reported common stock prices did not prompt the conversion feature of the 2028 Convertible Notes. As a result, the 2028 Convertible Notes are not convertible at the option of the holders during the second quarter of 2023.
As of March 31, 2023, the if-converted value of the 2028 Convertible Notes exceeded the principal amount by $92.6 million.
Interest Charges
The following table presents the components of the Company’s interest expense related to its indebtedness and financial assurance instruments such as surety bonds and letters of credit. Additionally, the table sets forth the amount of cash paid for interest and the amount of non-cash interest expense primarily related to the amortization of debt issuance costs.
Three Months Ended March 31,
20232022
 (Dollars in millions)
Indebtedness$6.4 $25.9 
Financial assurance instruments12.0 13.5 
Interest expense$18.4 $39.4 
Cash paid for interest$19.1 $37.2 
Non-cash interest expense$1.6 $3.8 
Covenant Compliance
The Company was compliant with all relevant covenants under its debt and other finance agreements at March 31, 2023. The April 2023 termination of the Company’s credit agreement and related letter of credit facility, as described in Note 11. “Financial Instruments and Other Guarantees,” eliminated the related compliance requirements as of March 31, 2023 and prospectively.