Debt

9 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

Debt

DEBT

The Company’s borrowings consist of the following:

	As of
	September 30, 2021		December 31, 2020
(in thousands)
5.75% unsecured notes due June 1, 2026 (1)	$	396,649	$	396,112
Revolving credit facility	122,251		74,686
Commercial note	23,000		25,250
Pinnacle Bank term loan	9,840		10,692
Pinnacle Bank line of credit	—		2,295
Other indebtedness	4,149		3,520
Total Debt	$	555,889	$	512,555
Less: current portion	(44,254)		(6,452)
Total Long-Term Debt	$	511,635	$	506,103

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(1)     The carrying value is net of $3.4 million and $3.9 million of unamortized debt issuance costs as of September 30, 2021 and December 31, 2020, respectively.

The outstanding balance on the Company’s revolving credit facility was $122.3 million as of September 30, 2021. Borrowings under the Company’s revolving credit facility consisted of borrowings of $40 million and £61 million under its U.S. dollar and multicurrency tranches, respectively, with interest payable at 1 month USD and 3 month GBP LIBOR, respectively, plus 1.50%. The Company’s other indebtedness at September 30, 2021 and December 31, 2020 is at interest rates of 0% to 16% and matures between 2023 and 2030.

The Company is in compliance with all financial covenants as of September 30, 2021.

During the three months ended September 30, 2021 and 2020, the Company had average borrowings outstanding of approximately $545.9 million and $515.1 million, respectively, at average annual interest rates of approximately 4.8% and 5.0%, respectively. During the three months ended September 30, 2021 and 2020, the Company incurred net interest expense of $9.4 million and $6.4 million, respectively.

During the nine months ended September 30, 2021 and 2020, the Company had average borrowings outstanding of approximately $531.3 million and $512.8 million, respectively, at average annual interest rates of approximately 4.9% and 5.1%, respectively. During the nine months ended September 30, 2021 and 2020, the Company incurred net interest expense of $22.5 million and $19.3 million, respectively.

During the three and nine months ended September 30, 2021, the Company recorded net interest expense of $2.6 million and $2.7 million, respectively, to adjust the fair value of the mandatorily redeemable noncontrolling interest. Fair value adjustments are presented within interest expense and interest income in the Company’s Condensed Consolidated Statements of Operations and are reclassified to present the net change in fair value for each reporting period. The fair value of the mandatorily redeemable noncontrolling interest was based on the fair value of the underlying subsidiaries owned by GHC One, after taking into account any debt and other noncontrolling interests of its subsidiary investments. The fair value of the owned subsidiaries is determined by reference to either a discounted cash flow or EBITDA multiple, which approximates fair value (Level 3 fair value assessment).

At September 30, 2021 and December 31, 2020, the fair value of the Company’s 5.75% unsecured notes, based on quoted market prices (Level 2 fair value assessment), totaled $417.7 million and $421.7 million, respectively, compared with the carrying amount of $396.6 million and $396.1 million, respectively. The carrying value of the Company’s other unsecured debt at September 30, 2021 and December 31, 2020 approximates fair value.