Debt Obligations

12 Months Ended

Dec. 31, 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 provided 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%. 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.

On July 15, 2016, the Company redeemed all of its outstanding 3.75% Convertible Senior Notes with an aggregate principle amount of $60,000. Under the terms of the indenture, holders of the Notes were paid cash up to the aggregate principal amount of the notes and were issued shares of common stock for the remainder of the conversion, with any fractional shares paid in cash. The conversion resulted in the issuance of 540 shares of common stock of the Company to the bondholders, but resulted in no dilution to Rudolph shareholders as these shares were covered by the convertible note hedge that was entered into by the Company in 2011 at the time of issuance of the notes.

The sale of the warrant gave the holder the right to purchase 4,634 shares of the Company’s common stock at a strike price of $17.00 per share. The warrant has a series of daily expiration dates beginning in October 2016 and ending in January 2017. From October 13, 2016 to December 31, 2016, the holder exercised 4,248 warrants, which settled for 80 shares of the Company’s common stock and $10,525 payable in cash, of which $9,500 was paid as of December 31, 2016, at a weighted average stock price of $19.82 per share. The remaining 386 warrants were exercised in January 2017 by the holder for 102 shares of the Company’s common stock at a weighted average stock price of $23.13 per share.

The following table reflects the net carrying value of the Notes as of December 31, 2016 and 2015:



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

The following table presents the amount of interest cost recognized relating to the Notes during the years ended December 31, 2016, 2015 and 2014.



	December 31,
	2016		2015		2014
Contractual interest coupon	$	1,186	$	2,250	$	2,250
Amortization of interest discount	1,893		3,334		3,022
Amortization of debt issuance costs	261		432		363
Total interest cost recognized	$	3,340	$	6,016	$	5,635