Notes Payable, Long-Term Debt and Other Obligations

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

Notes Payable, Long-Term Debt and Other Obligations

NOTES PAYABLE, LONG-TERM DEBT AND OTHER OBLIGATIONS

Notes payable, long-term debt and other obligations consisted of:

	March 31, 2022		December 31, 2021
Vector:
5.75% Senior Secured Notes due 2029	$	875,000	$	875,000
10.5% Senior Notes due 2026, net of unamortized discount of $2,543 and $2,647	552,457		552,353
Liggett:
Revolving credit facility	24		24
Equipment loans	58		64
Other	24		32
Notes payable, long-term debt and other obligations	1,427,563		1,427,473
Less:
Debt issuance costs	(27,856)		(28,803)
Total notes payable, long-term debt and other obligations	1,399,707		1,398,670
Less:
Current maturities	(76)		(79)
Amount due after one year	$	1,399,631	$	1,398,591

5.75% Senior Secured Notes due 2029 — Vector:

As of March 31, 2022, the Company was in compliance with all debt covenants related to its 5.75% Senior Secured Notes due 2029.

6.125% Senior Secured Notes due 2025 — Vector:

On February 1, 2021, the 6.125% Senior Secured Notes due 2025 were redeemed in full and the Company recorded a loss on the extinguishment of debt of $21,362 for the three months ended March 31, 2021, including $13,013 of premium and $8,349 of other costs and non-cash interest expense related to the recognition of previously unamortized deferred finance costs.

10.5% Senior Notes due 2026 — Vector:

As of March 31, 2022, the Company was in compliance with all debt covenants related to its 10.5% Senior Notes due 2026.

Revolving Credit Agreement — Liggett:

As of March 31, 2022, there was $24 outstanding balance due under the Credit Agreement. Availability, as determined under the Credit Agreement, was approximately $83,500 based on eligible collateral at March 31, 2022. As of March 31, 2022, Liggett, Maple, and Vector Tobacco were in compliance with all debt covenants under the Credit Agreement.

Non-Cash Interest Expense — Vector:

	Three Months Ended
	March 31,
	2022		2021
Amortization of debt discount, net	$	105	$	94
Amortization of debt issuance costs	998		893
Loss on extinguishment of 6.125% Senior Secured Notes	—		8,349
	$	1,103	$	9,336

Fair Value of Notes Payable and Long-Term Debt:

	March 31, 2022				December 31, 2021
	Carrying		Fair		Carrying		Fair
	Value		Value		Value		Value
Senior Notes	$	1,427,457	$	1,361,869	$	1,427,353	$	1,426,176
Liggett and other	106		108		120		124
Notes payable and long-term debt	$	1,427,563	$	1,361,977	$	1,427,473	$	1,426,300

Notes payable and long-term debt are carried on the condensed consolidated balance sheets at amortized cost. The fair value determinations disclosed above are classified as Level 2 under the fair value hierarchy disclosed in Note 11 if such liabilities were recorded on the condensed consolidated balance sheets at fair value. The estimated fair value of the Company’s notes payable and long-term debt has been determined by the Company using available market information and appropriate valuation methodologies including the evaluation of the Company’s credit risk. The Company used a derived price based upon quoted market prices and trade activity as of March 31, 2022 to determine the fair value of its publicly-traded notes and debentures. The carrying value of the revolving credit facility is equal to fair value. The fair value of the equipment loans and other obligations was determined by calculating the present value of the required future cash flows. However, considerable judgment is required to develop the estimates of fair value and, accordingly, the estimate presented herein is not necessarily indicative of the amount that could be realized in a current market exchange.