Long Term Debt

9 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

Long Term Debt

Long Term Debt

Convertible Senior Notes

In April 2020, the Company completed its registered underwritten public offering of $374 million (including exercise of the underwriters' overallotment option) aggregate principal amount of 7.0% convertible senior notes due 2023 (the “Notes” or “Note Offering”). These Notes require semi-annual interest payments at a fixed coupon rate of 7.0% until maturity or conversion, which will be no later than April 1, 2023. After deducting the underwriting discount and offering costs, the Company received $362 million. At completion of the offering, these notes were convertible at the option of the holder at a conversion rate of 153.8461 common shares per $1,000 principal amount of convertible senior notes (equivalent to a conversion price of $6.50 per common share). On June 29, 2021, as a result in the change in the dividend, the conversion rate was updated to 154.1546 common shares per $1,000 principal amount of convertible senior notes (equivalent to a conversion price of $6.49 per common share). Upon conversion of these notes by a holder, the holder will receive shares of the Company's common stock.

As of September 30, 2021, approximately $358 million of the Notes have been converted into approximately 55 million shares of common stock of the Company. During the quarter ended September 30, 2021, the Company acquired $15.5 million of the Notes for $37 million, this transaction resulted in a loss on extinguishment of debt of $21 million. As of September 30, 2021 there was no outstanding principal amount, unamortized deferred debt issuance cost and accrued interest payable on these Notes. As of December 31, 2020, the outstanding principal amount of these Notes was $53 million, unamortized deferred debt issuance cost was $1 million, and accrued interest payable was $1 million. The net interest expense for the quarter and nine months ended September 30, 2021 was $238 thousand and $2 million, respectively. The net interest expense for the quarter and nine months ended September 30, 2020 was $1 million and $6 million, respectively.