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Amortization expense was $74.0 million , $47.4 million and $30.2 million for the years ended December 31, 2015 , 2014 and 2013 , respectively.
8. Long-Term Debt
8.0%SeniorNotes
On July 26, 2012 , the Company's subsidiaries, issued in a private offering exempt from the registration requirements of the Securities Act of 1933, as amended, $250
million aggregate principal amount of 8.0% senior unsecured notes (the “Senior Notes”) due August 1, 2020 . j2 Cloud Services, Inc. received proceeds of $245 million in cash, net
of initial purchaser's discounts and commissions of $5 million . As of December 31, 2015 , the unamortized discount on Senior Notes was approximately $3.3 million . Other fees
were incurred in connection with the issuance of the Senior Notes and have an unamortized balance of $0.9 million as of December 31, 2015 , which is recorded within long-term
other assets. The net proceeds were available for general corporate purposes, including acquisitions. Interest is payable semi-annually on February 1 and August 1 of each year. j2
Cloud Services, Inc. has the option to call the Senior Notes in whole or in part after August 1, 2016 , subject to certain premiums as defined in the indenture governing the Senior
Notes plus accrued and unpaid interest. In addition, at any time before August 1, 2016, j2 Cloud Services, Inc. may redeem the Senior Notes in whole or in part at a "make-whole"
redemption price specified in the indenture plus accrued and unpaid interest, if any, to (but not including) the redemption date. Upon a change in control, the holders may put the
Senior Notes at 101% of the principal amount of the Senior Notes plus accrued and unpaid interest, if any, to the repurchase date. The Senior Notes are not guaranteed by any of the
j2 Cloud Services, Inc. subsidiaries as of December 31, 2015 , because, as of such date, all of j2 Cloud Services existing domestic restricted subsidiaries are deemed insignificant
subsidiaries (as that term is defined in the indenture) or are designated as unrestricted subsidiaries. If j2 Cloud Services, Inc. or any of its restricted subsidiaries (as that term is
defined in the indenture) acquires or creates a domestic restricted subsidiary, other than an insignificant subsidiary, after the issue date, or any insignificant subsidiary ceases to fit
within the definition of insignificant subsidiary, such restricted subsidiary is required to unconditionally guarantee, jointly and severally, on an unsecured basis, j2 Cloud Services,
Inc.'s obligations under the Senior Notes. In connection with the issuance of Convertible Notes (defined below), j2 Global, Inc. unconditionally guaranteed, on an unsecured basis,
the obligations of j2 Cloud Services, Inc. under the Senior Notes.
The indenture governing the Senior Notes contain certain restrictive and other covenants applicable to j2 Cloud Services, Inc. and subsidiaries designated as restricted
subsidiaries including, but not limited to, limitations on debt and disqualified or preferred stock, restricted payments, liens, sale and leaseback transactions, dividends and other
payment restrictions, asset sales and transactions with affiliates. Restricted payments are applicable only if j2 Cloud Services, Inc. and subsidiaries designated as restricted
subsidiaries has a pro forma leverage ratio of greater than 1.75 to 1.0. In addition, if such leverage ratio is in excess of 1.75 to 1.0, restricted payments are permitted up to $50
million. As of December 31, 2015 , j2 Cloud Services, Inc. was in compliance with all such covenants. Violation of these covenants could result in a default which could result in the
acceleration of outstanding amounts if such default is not cured or waived within the time periods outlined in the indenture.
As of December 31, 2015 and 2014, the estimated fair value of the Senior Notes was approximately $262.2 million and $262.4 million , respectively, and was based on the
quoted market prices of debt instruments with similar terms, credit rating and maturities of the Senior Notes as of December 31, 2015 and 2014, respectively.
3.25%ConvertibleNotes
On June 10, 2014 , j2 Global issued $402.5 million aggregate principal amount of 3.25% convertible senior notes due June 15, 2029 (the “Convertible Notes”). j2 Global
received proceeds of $391.4 million in cash, net of underwriters' discounts and commissions. The net proceeds were available for general corporate purposes. The Convertible Notes
bear interest at a rate of 3.25% per annum, payable semiannually in arrears on June 15 and December 15 of each year. Beginning with the six-month interest period commencing on
June 15, 2021, the Company must pay contingent interest on the Convertible Notes during any six-month interest period if the trading price per $1,000 principal amount of the
Convertible Notes for each of the five trading days immediately preceding the first day of such interest period equals or exceeds $1,300. Any contingent interest payable on the
Convertible Notes will be in addition to the regular interest payable on the Convertible Notes.
Holders may surrender their Convertible Notes for conversion at any time prior to the close of business on the business day immediately preceding the maturity date only if
one or more of the following conditions is satisfied: (i) during any calendar quarter commencing after the calendar quarter ending on September 30, 2014 (and only during such
calendar quarter), if the closing sale price of j2 Global common stock for at least 20 trading days in the period of 30 consecutive trading days ending on the last trading day of the
calendar quarter immediately preceding the calendar quarter in which the conversion occurs is more than 130%
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