Analysis of Debt
Total Debt (Carrying Amount)
Cytokinetics Inc., balance sheet: debt
US$ in thousands
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
Total debt (carrying amount) experienced an aggressive expansion from December 31, 2018, through December 31, 2022, rising from $42.4 million to $611.6 million. This represents a total increase of approximately 1,337% over the five-year period. While the growth was steady between 2019 and 2021, a significant acceleration occurred in 2022, where total debt more than quadrupled compared to the previous year.
- Convertible Notes Analysis
- Convertible notes emerged as the primary driver of the company's debt profile. After starting with no balance in 2018, these instruments increased to $84.2 million in 2019 and grew moderately through 2021. A substantial spike was recorded on December 31, 2022, with the carrying amount reaching $545.8 million, accounting for the vast majority of the total debt obligation at that time.
- Term Loan Trends
- The non-current portion of term loans showed a consistent upward trend, increasing from $39.8 million in 2018 to $63.8 million in 2022. Notably, the current portion of the term loan, which stood at $2.6 million in 2018, was absent in all subsequent reporting periods, suggesting a shift in repayment structures or refinancing activities.
- Finance Lease Liabilities
- Finance lease obligations were non-existent in the records until 2021. By December 31, 2022, combined short-term and long-term finance lease liabilities totaled approximately $2.0 million, representing a negligible fraction of the overall debt structure compared to the convertible notes and term loans.
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Total Debt (Fair Value)
| Dec 31, 2022 | |
|---|---|
| Selected Financial Data (US$ in thousands) | |
| Term loan, net | 63,810) |
| 2026 Convertible Notes | 94,800) |
| 2027 Convertible Notes | 620,300) |
| Finance lease liabilities | 2,001) |
| Total debt (fair value) | 780,911) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 1.28 |
Based on: 10-K (reporting date: 2022-12-31).
Weighted-average Interest Rate on Debt
Weighted-average interest rate on debt: 4.61%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 8.05% | 63,810) | 5,137) | |
| 4.60% | 20,679) | 951) | |
| 4.17% | 525,129) | 21,898) | |
| 9.47% | 2,001) | 189) | |
| Total | 611,619) | 28,175) | |
| 4.61% | |||
Based on: 10-K (reporting date: 2022-12-31).
1 US$ in thousands
2 Weighted-average interest rate = 100 × 28,175 ÷ 611,619 = 4.61%