Financing Arrangements |
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| Financing Arrangements | Note 4. Financing Arrangements The following table presents a summary of LivaNova’s long-term debt obligations (in thousands, except interest rates):
Revolving Credit and Term Facilities The outstanding principal amount of LivaNova’s short-term unsecured revolving credit agreements and other agreements with various banks was $30 thousand and $0.7 million at June 30, 2025 and December 31, 2024, respectively. There were no outstanding borrowings under the $225.0 million revolving facilities under the 2021 First Lien Credit Agreement as of June 30, 2025 and December 31, 2024. As of June 30, 2025 and December 31, 2024, the applicable commitment fee percentage was 0.25% per annum and 0.5% per annum, respectively. As of June 30, 2025, the Company was in compliance with the financial covenants contained in the 2021 First Lien Credit Agreement. Debt discount and issuance costs related to the Initial Term Facility were $9.6 million. The unamortized debt discount and issuance costs related to the Initial Term Facility were $1.3 million and $4.8 million as of June 30, 2025 and December 31, 2024, respectively. On May 2, 2025, LivaNova made an early repayment of $200 million on principal borrowings under the Term Facilities. The early repayment resulted in a loss on debt extinguishment of $2.7 million recognized for the three and six months ended June 30, 2025, associated with the write-off of unamortized debt issuance costs, and is included within loss on debt extinguishment on the condensed consolidated statements of income (loss). 2029 Notes The effective interest rate of the 2029 Notes was 9.84% as of June 30, 2025. The unamortized debt discount and issuance costs related to the 2029 Notes as of June 30, 2025 and December 31, 2024 were $78.4 million and $87.0 million, respectively. As of June 30, 2025, the conditions for conversion were not met. The Company included its obligations from the 2029 Notes and the associated embedded derivative as long-term liabilities on the condensed consolidated balance sheet as of June 30, 2025, and the 2029 Notes are not convertible for the three months ended September 30, 2025. For additional information regarding the 2029 Notes, refer to LivaNova’s 2024 Form 10-K. 2025 Notes The effective interest rate of the 2025 Notes was 9.92% as of June 30, 2025. The unamortized debt discount and issuance costs related to the 2025 Notes as of June 30, 2025 and December 31, 2024 were $1.8 million and $3.6 million, respectively. As of June 30, 2025, the conditions for exchange were not met. The Company included its obligations from the 2025 Notes and the associated embedded derivative as current liabilities on the condensed consolidated balance sheet as of June 30, 2025. The 2025 Notes are not currently exchangeable, but will be exchangeable at the holder’s option, without any additional conditions, from September 15, 2025 through the second scheduled trading day immediately preceding the maturity date of the 2025 Notes. For additional information regarding the 2025 Notes, refer to LivaNova’s 2024 Form 10-K.
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