Debt Obligations

6 Months Ended

Jun. 30, 2016

Debt Obligations

On July 25, 2011, the Company issued $60,000 aggregate principal amount of 3.75% Convertible Senior Notes due 2016 (the “Notes”) at par. The Notes were issued pursuant to an indenture, dated as of July 25, 2011, between the Company and Bank of New York Mellon Trust Company, N.A., as Trustee, which includes a form of Note. The Notes provide for the payment of interest semi-annually in arrears on January 15 and July 15 of each year, beginning January 15, 2012, at an annual rate of 3.75% and will mature on July 15, 2016, unless earlier converted or repurchased. The Notes may be converted, under certain circumstances, based on an initial conversion rate of 77.241 shares of Company common stock per $1 principal amount of Notes, which represents an initial conversion price of approximately $12.95 per share. Concurrently with the issuance of the Notes, the Company purchased a convertible note hedge and sold a warrant. Each of the convertible note hedge and warrant transactions were entered into with an affiliate of the initial purchaser of the Notes. The convertible note hedge is intended to reduce the potential future dilution to the Company’s common stock associated with the conversion of the Notes. However, the warrant transaction will have a dilutive effect on the Company’s earnings per share to the extent that the price of the Company’s common stock exceeds the strike price of the warrant. The strike price of the warrant is $17.00 per share subject to adjustment in accordance with the terms of the agreement. The net proceeds to the Company from the sale of the Notes, including the convertible note hedge and warrant, were $50,249.

The following table reflects the net carrying value of the Notes:



	June 30, 2016		December 31, 2015
Convertible senior notes	$	60,000	$	60,000
Less: Unamortized interest discount	100		1,893
Less: Unamortized debt issuance costs	15		261
Net carrying value of convertible senior notes	$	59,885	$	57,846

The following table presents the amount of interest cost recognized relating to the Notes during the three and six months ended June 30, 2016 and June 30, 2015:



	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Contractual interest coupon	$	563	$	563	$	1,125	$	1,125
Amortization of interest discount	899		815		1,793		1,626
Amortization of debt issuance costs	123		104		246		207
Total interest cost recognized	$	1,585	$	1,482	$	3,164	$	2,958

The remaining bond discount of $100 and debt issuance costs of $15 relating to the Notes, as of June 30, 2016, will be amortized over the remaining life of the Notes.

See Note 16 for additional discussion regarding the Company’s subsequent events.