Long-term Debt



	June 30, 2018			December 31, 2017
	(In millions)
Term loan, bearing interest at variable rates (rate of 4.34% as of June 30, 2018), maturing in June 2021	$	360.0		$	370.0
Unamortized deferred financing costs	(1.4		)	(1.7		)
Total senior debt	358.6			368.3
Senior convertible notes, bearing interest at 2.25% per annum, interest payments due in June and December, maturing in December 2023	300.0			300.0
Unamortized discount and deferred financing costs	(49.0		)	(52.8		)
Total convertible senior notes	251.0			247.2
Capital lease, payable in monthly installments, maturing in 2022	1.8			0.9
Total other debt	1.8			0.9
Total debt, net of unamortized discount and deferred financing costs	611.4			616.4
Less: Amounts due within one year	(30.4		)	(25.0		)
Total long-term debt, net of unamortized discount and deferred financing costs	$	581.0		$	591.4

Senior Credit Facility

On June 17, 2016, the Company entered into a $750.0 million senior secured senior credit facility (the “Senior Credit Facility”). The Senior Credit Facility matures on June 17, 2021, and consists of (i) a $350.0 million revolving line of credit (the “Revolver”) and (ii) a $400.0 million term loan (the “Term Loan”). Under the Revolver, up to an aggregate of $100.0 million is available for the issuance of letters of credit and up to an aggregate of $10.0 million is available for swingline loans. As of June 30, 2018, the Company had $360.0 million outstanding under the Term Loan, zero borrowings under the Revolver, and had issued $38.4 million letters of credit.

The key financial covenants are as follows:



Financial Covenant	Actual Ratios as of June 30, 2018	Required Ratios
Consolidated Interest Coverage Ratio, as defined under the Senior Credit Facility	11.75 to 1.00	Not less than: 3.00 to 1.00
Consolidated Net Leverage Ratio, as defined under the Senior Credit Facility	2.42 to 1.00	Not greater than: 3.75 to 1.00

The Company was in compliance with its financial and non-financial covenants under the Senior Credit Facility as of June 30, 2018.

2¼% Convertible Senior Notes

The Company issued $300.0 million aggregate principal amount of 2¼% Notes in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended.

The Company separately accounted for the liability and equity components of the 2¼% Notes. The initial liability component of the 2¼% Notes was valued based on the present value of the future cash flows using an estimated borrowing rate at the date of the issuance for similar debt instruments without the conversion feature, which equals the effective interest rate of 5.8% on the liability component. The equity component, or debt discount, was initially valued equal to the principal value of the 2¼% Notes, less the liability component. The debt discount is being amortized as a non-cash charge to interest expense over the period from the issuance date through December 15, 2023.

The debt issuance costs of $5.8 million incurred in connection with the issuance of the 2¼% Notes were capitalized and bifurcated into deferred financing costs of $4.7 million and equity issuance costs of $1.1 million. The deferred financing costs are being amortized to interest expense from the issuance date through December 15, 2023.

The 2¼% Notes consisted of the following (in millions, except years, percentages, conversion rate, and conversion price):



	June 30, 2018			December 31, 2017
Carrying value, long-term	$	251.0		$	247.2
Unamortized discount and deferred financing costs	49.0			52.8
Principal amount	$	300.0		$	300.0
Carrying amount of equity component, net of equity issuance costs	$	54.5		$	54.5
Remaining amortization period (years)	5.5			6.0
Effective interest rate	5.8		%	5.8		%
Conversion rate (shares of common stock per $1,000 principal amount)	38.4615			38.4615
Conversion price (per share of common stock)	$	26.00		$	26.00

Based on the Company's closing stock price of $29.49 on June 30, 2018, the if-converted value of the 2¼% Notes exceeded the aggregate principal amount of the 2¼% Notes by $40.3 million. The Company only expects the conversion premium for the 2¹/₄% Notes to be settled in common shares.

The following table presents the interest expense components for the 2¼% Notes:



	Three months ended June 30,				Six months ended June 30,
	2018		2017		2018		2017
	(In millions)
Interest expense-contractual interest	$	1.7	$	1.7	$	3.4	$	3.4
Interest expense-amortization of debt discount	1.8		1.7		3.5		3.3
Interest expense-amortization of deferred financing costs	0.2		0.2		0.3		0.3

Capital Leases

As of June 30, 2018, and December 31, 2017, the Company had capital lease obligations for certain information technology equipment.

In September 2017, the Company entered into an agreement to lease 122,000-square feet of office space in Huntsville, Alabama. The term of the lease is twenty years and commenced in July 2018 resulting in an estimated remaining financial commitment of $47.8 million representing a present value of $24.9 million as of June 30, 2018.

In October 2017, the Company entered into an agreement to lease a new 136,000-square-foot advanced manufacturing facility located in Huntsville, Alabama. The term of the lease is thirty-one years and is expected to commence in December 2018 resulting in an estimated remaining financial commitment of $34.7 million representing a present value of $21.0 million as of June 30, 2018.