LONG-TERM DEBT

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

LONG-TERM DEBT

8. LONG-TERM DEBT

In May 2022, Egan Jones’ rating on the Company’s outstanding senior notes expired such that our notes are not currently rated. The lack of a rating, if not remediated within 30 days from receipt of notice as provided in the note indentures, has the potential to result in an Event of Default under the note indentures. The Company intends to use its best efforts to secure such a rating as soon as reasonably practicable. If the Company fails to secure such a rating, such condition, represents a potential default under our debt indentures that could result in acceleration of repayment of our debt. If the Company fails to secure such a rating, is placed into receivership or fails to obtain excess-of-loss reinsurance, such conditions, if not timely cured, could result in acceleration of repayment of our debt. The Company does not have adequate liquidity to repay this debt without replacement borrowings, which may not be available.

The fair values of the Convertible Senior Unsecured Notes due 2026 were $22.5 million and $22.1 million as of March 31, 2022 and December 31, 2021, respectively. The fair values of the Senior Unsecured Fixed Rate Notes due 2029 were $102.8 million and $106.5 million as of March 31, 2022 and December 31, 2021, respectively. Refer to Note 3 for additional information.

Refer to Note 10 of our 2021 Form 10-K for additional information regarding our long-term debt.