Debt

6 Months Ended

Jun. 30, 2022

Debt

Debt

7. Debt

At June 30, 2022, debt comprised of the following:

					Debt
			Unaccreted		Issuance		Carrying
	Principal		Discount		Costs		Value
Convertible senior notes, due 2026	$	425,000	$	—	$	(9,673)	$	415,327
Line of credit, due 2022		1,000		—		—		1,000
Other notes		450		(59)		—		391
	$	426,450	$	(59)	$	(9,673)	$	416,718

Convertible Senior Notes

Interest expense recognized related to the 0.75% Convertible Senior Notes due 2026 (the “2026 Notes”) was approximately $1.4 and $2.7 million for the three and six months ended June 30, 2022, and comprised of contractual interest expense and amortization of debt issuance costs. There was no interest expense related to the 2026 Notes in the three and six months ended June 30, 2021.

Line of Credit

In connection with the acquisition of Homeowners of America on April 5, 2021, the Company assumed a $5.0 million revolving line of credit (“RLOC”) with Legacy Texas Bank. Outstanding balances under the RLOC bear interest at the Wall Street Journal Prime + 0% and mature on November 16, 2022. In addition, the Company pays 0.25% per annum of the daily-unused portion of the RLOC. Outstanding borrowings on the RLOC at June 30, 2022, were $1.0 million.

Collateral for the RLOC includes all assets and stock of Homeowners of America Holding Corporation (“HAHC”), HOA’s insurance holding company, and its subsidiaries. The credit agreement is subject to standard financial covenants and reporting requirements. At June 30, 2022, the Company was in compliance with all required covenants.

Term Loan Facility

In connection with the acquisition of HOA on April 5, 2021, the Company assumed a nine-year, $10.0 million term loan facility with a local bank. As of June 30, 2022, the Company has made no borrowings on the term loan facility.