Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Class A Redeemable Convertible Preferred Stock (Tables)

v3.3.1.900
Class A Redeemable Convertible Preferred Stock (Tables)
12 Months Ended
Dec. 31, 2015
Temporary Equity Disclosure [Abstract]  
Summary of Product of Paid-in-kind Dividend Rate

 

 

 

 

 

 

For the Period:

  

PIK Dividend Rate
per Annum in Effect

 

Commencing on the Original Issue Date and ending on the 1st anniversary of the Original Issue Date

  

 

0.0

Commencing on the day after the 1st anniversary of the Original Issue Date and ending on the 4th anniversary of the Original Issue Date

  

 

4.0

Commencing on the day after the 4th anniversary of the Original Issue Date and ending on the 5th anniversary of the Original Issue Date

  

 

5.0

Commencing on the day after the 5th anniversary of the Original Issue Date and ending on the 6th anniversary of the Original Issue Date

  

 

6.0

Commencing on the day after the 6th anniversary of the Original Issue Date and ending on the 7th anniversary of the Original Issue Date

  

 

7.0

Commencing on the day after the 7th anniversary of the Original Issue Date and ending on the 8th anniversary of the Original Issue Date

  

 

8.0

Commencing on the day after the 8th anniversary of the Original Issue Date and ending on the 9th anniversary of the Original Issue Date

  

 

9.0

Commencing on the day after the 9th anniversary of the Original Issue Date and ending on the date of automatic conversion

  

 

10.0

 

Schedule of Redemption Discounts

 

For the Period:

  

Discount

 

Commencing on the Original Issue Date and ending on the 1st anniversary of the Original Issue Date

  

 

9.0909

Commencing on the day after the 1st anniversary of the Original Issue Date and ending on the 2nd anniversary of the Original Issue Date

  

 

6.8182

Commencing on the day after the 2nd anniversary of the Original Issue Date and ending on the 3rd anniversary of the Original Issue Date

  

 

4.5455

Commencing on the day after the 3rd anniversary of the Original Issue Date and ending on the 4th anniversary of the Original Issue Date

  

 

2.2727

 

Schedule of Deemed Dividends and Issue Discount

The total amount of deemed dividends and the issue discount are as follows (in thousands):

 

Fair Value

 

$

73,200

 

Issue Discount

 

 

36,800

 

PIK Dividends

 

 

80,816

 

10 Year Liquidation Value

 

$

190,816

 

 

Schedule of Series A Preferred Stock Accretion of Ten Year Liquidation Value

 

The fair value of the Series A Preferred Stock will be accreted to the ten year liquidation value of $190.8 million using an effective interest rate of approximately 10.06% as follows (in thousands):

 

 

 

Anniversary of Closing Date

 

 

 

Year 1

 

 

Year 2

 

 

Year 3

 

 

Year 4

 

 

Year 5

 

 

Year 6

 

 

Year 7

 

 

Year 8

 

 

Year 9

 

 

Year 10

 

Fair Value

 

$

73,200

 

 

$

80,560

 

 

$

88,661

 

 

$

97,576

 

 

$

107,387

 

 

$

118,185

 

 

$

130,069

 

 

$

143,147

 

 

$

157,541

 

 

$

173,382

 

Deemed Dividends

 

 

7,360

 

 

 

8,101

 

 

 

8,915

 

 

 

9,811

 

 

 

10,798

 

 

 

11,884

 

 

 

13,078

 

 

 

14,394

 

 

 

15,841

 

 

 

17,434

 

 

 

$

80,560

 

 

$

88,661

 

 

$

97,576

 

 

$

107,387

 

 

$

118,185

 

 

$

130,069

 

 

$

143,147

 

 

$

157,541

 

 

$

173,382

 

 

$

190,816

 

 

Schedule of Beneficial Conversion Feature

The calculation of the Beneficial Conversion Feature is as follows (in thousands except share and per share amounts):

 

Issue date fair value

 

$

73,200

 

 

Common shares the stock

   converts into

 

 

14,666,667

 

Common shares the stock

   coverts into

 

 

14,666,667

 

 

Excess fair value of stock

   over conversion price

 

$

3.05

 

Effective conversion price

 

$

4.99

 

 

Value of beneficial

   conversion feature

 

$

44,720

 

 

 

 

 

 

 

 

 

 

 

 

Stock price on issue date

 

$

8.04

 

 

Fair Value

 

$

73,200

 

Effective conversion price

 

$

4.99

 

 

Value of Beneficial

   Conversion Feature

 

$

(44,720

)

Excess fair value over

   conversion price

 

$

3.05

 

 

Carrying Value

 

$

28,480