|9 Months Ended|
Sep. 30, 2021
|Subsequent Events [Abstract]|
|Subsequent Events||SUBSEQUENT EVENTS
The Company has evaluated subsequent events for potential recognition and disclosures through the date the Condensed Consolidated Financial Statements were filed.
On October 6, 2021, the Company entered into securities exchange agreements (“Exchange Agreements”) with Antara Capital LP (“Antara”) and HT Investments MA LLC, the holders of its 2024 Notes, to exchange $90.0 million in principal amount of the notes for approximately 15.6 million shares of common stock. The number of shares issued in connection with the Exchange Agreements was calculated by multiplying 109% of the principal amount of the notes exchanged by the average of the volume-weighted average closing prices of the Company’s common stock for the three trading days immediately preceding October 11, 2021. The transaction settled on October 12, 2021 and the aggregate principal of 2024 Notes remaining outstanding was $110.0 million. The Company recorded a loss on exchange of approximately $17.5 million, which was recognized in Interest Expense.
On November 2, 2021, the Company entered into a securities exchange agreement (“Antara Exchange”) with Antara to exchange $82.5 million in principal amount of the 2024 Notes for approximately 12.1 million shares of common stock. The number of shares issued in connection with the Antara Exchange was calculated by dividing the principal amount of the notes exchanged by the average of the Nasdaq Official Closing Prices of the Company's common stock on the five trading days immediately preceding November 2, 2021. The Antara Exchange closed on November 4, 2021 and the aggregate principal of the 2024 Notes remaining outstanding is $27.5 million. The Company recorded a loss on exchange of approximately $17.4 million, which was recognized in Interest Expense.
The Company classified the fair value of the total principal exchanged under the Exchange Agreements and Antara Exchange as current in its Condensed Consolidated Balance Sheets as of September 30, 2021. There are no required redemptions of the outstanding principal, and the balance will generally not be redeemable at the option of the Company prior to the third anniversary of their issue date. Accordingly, the Company has classified the fair value of the $27.5 million outstanding principal balance as long-term debt on its Condensed Consolidated Balance Sheets as of September 30, 2021.
The entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef