SEC Filings

10-K
ARRAY BIOPHARMA INC filed this Form 10-K on 08/11/2017
Entire Document
 

Summary of Interest Expense

The following table shows the details of our interest expense for all of our debt arrangements outstanding during the periods presented, including contractual interest, and amortization of debt discount, debt issuance costs and loan transaction fees that were charged to interest expense (in thousands):

 
Year Ended June 30,
 
2017
 
2016
 
2015
Notes Payable
 
 
 
 
 
Simple interest
$
413

 
$

 
$

Fees paid
240

 

 

Total interest expense on the notes payable at fair value
653

 

 

Comerica Term Loan


 

 

Simple interest
250

 
501

 
480

Amortization of prepaid fees paid for letters of credit
2

 
31

 
44

Total interest expense on the Comerica term loan
252

 
532

 
524

Silicon Valley Bank Term Loan

 

 

Simple interest
152

 

 

Amortization of debt discount
163

 

 

Amortization of prepaid fees for line of credit
85

 

 

Total interest expense on the Silicon Valley Bank term loan
400

 

 

3.00% Convertible Senior Notes

 

 

Contractual interest
3,968

 
3,967

 
3,968

Amortization of debt discount
6,681

 
6,033

 
5,447

Amortization of debt issuance costs
379

 
342

 
308

Total interest expense on the 3.00% convertible senior notes
11,028

 
10,342

 
9,723

Total interest expense
$
12,333

 
$
10,874

 
$
10,247


Commitment Schedule
 
We are required to make principal payments for our long-term debt as follows during the fiscal years ending June 30 (in thousands):
 
Principal Due
 
 
2018
$

2019
12,500

2020
137,250

2021
5,000

2022 (1)
2,500

Thereafter

 
$
157,250

(1) Principal payments exclude $1.2 million term loan final payment fee

NOTE 8 – FAIR VALUE MEASUREMENTS

The following table shows the fair value of the Company's financial instruments classified into the fair value hierarchy and measured on a recurring basis on the balance sheets as of June 30, 2017:
 
 
 
Fair Value Measurement as of June 30, 2017
 
 
Level 1
Level 2
Level 3
 
Total
($ in thousands)
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
   Current assets
 
 
 
 
 
 
 
 
U.S. treasury securities
 
108,098

 

 

 
108,098

Mutual fund securities
 
292

 

 

 
292

   Long-term assets
 
 
 
 
 
 
 
 
Mutual fund securities
 
732

 

 

 
732

 
 
 
 
 
 
 
 
 
Liabilities
 
 

 
 

 
 

 
 
Notes payable, at fair value
 

 

 
12,600

 
12,600


 
 
Fair Value Measurement as of June 30, 2016
 
 
Level 1
Level 2
Level 3
 
Total
($ in thousands)
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
   Current Assets
 
 
 
 
 
 
 
 
U.S. treasury securities
 
53,120

 

 

 
53,120

Mutual fund securities
 
224

 

 

 
224

   Long-term Assets
 
 
 
 
 
 
 
 
Mutual fund securities
 
596

 

 

 
596

 
 
 
 
 
 
 
 
 

The fair value of marketable securities are determined using quoted market prices from daily exchange-traded markets based on the closing price as of the balance sheet date and are classified as Level 1.

The table below provides a rollforward of the changes in fair value of Level 3 financial instruments for the fiscal year ended June 30, 2017, comprising the Redmile Notes described below: 
 
($ in thousands)
 
Notes Payable at Fair Value
Balance at June 30, 2016
 
$

Additions during the period
 
10,000

Change in fair value
 
2,600

Balance at June 30, 2017
 
$
12,600


Redmile Notes

To measure the fair value of the principal amount on the Notes issued to Redmile, the Company was required to determine the fair value of the principal amount on the Notes and the conversion feature of the Notes. The Company utilized a Monte Carlo simulation to determine the method of payment of the principal amount by potential outcome and scenario, and applied the income approach to determine the fair value of the Notes, discounting the principal

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