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).
- Current Portion of Term Loan
- The current portion of the term loan was reported only in 2018 at 2,607 thousand US dollars. No data is available for subsequent years, indicating either full reclassification, repayment, or absence of such short-term components in later periods.
- Short-Term Finance Lease Liabilities
- This item appears starting in 2021 with 500 thousand US dollars and doubles to 1,000 thousand US dollars in 2022. This upward movement suggests an increasing reliance on short-term finance leases during the last two years reported.
- Term Loan, Net, Excluding Current Portion
- There is a steady increase over the five-year period, starting from 39,806 thousand US dollars in 2018 and rising consistently each year to reach 63,810 thousand US dollars in 2022. The growth, particularly notable in the last year, indicates ongoing borrowing or refinancing on a long-term basis.
- Convertible Notes, Net
- The convertible notes first appear in 2019 at 84,205 thousand US dollars, climbing gradually to 95,471 thousand US dollars in 2021, followed by a significant jump to 545,808 thousand US dollars in 2022. This substantial increase in 2022 signals a major issuance or revaluation of convertible debt during that year, greatly impacting overall debt levels.
- Long-Term Finance Lease Liabilities
- Accounts for 805 thousand US dollars in 2021 and increases modestly to 1,001 thousand US dollars in 2022. This gradual rise corresponds with the increase in short-term finance leases, highlighting a growing use of leasing arrangements in the company's capital structure.
- Total Debt (Carrying Amount)
- The total debt exhibits a pronounced upward trend from 42,413 thousand US dollars in 2018 to a peak of 144,143 thousand US dollars in 2021, and surges dramatically to 611,619 thousand US dollars in 2022. The spike in 2022 primarily reflects the significant increase in convertible notes and the rise in term loans. This sharp escalation suggests a strategic increase in leverage or financing activities in the most recent year.
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%