DEBT

6 Months Ended

Jun. 30, 2021


($ in millions)	June 30, 2021		December 31, 2020
5.125% senior unsecured notes due 2029(1)	$	400.0	$	400.0
6.375% senior unsecured notes due 2024 and unamortized premium(2)	—		201.8
Term loans(3)	300.0		—
Asset based revolving credit facility(4)	3.5		6.5
Delayed draw term loan facility(5)	—		—
Finance leases	85.4		87.9
Promissory notes	10.4		13.8
Debt issuance costs	(10.2)		(7.6)
Total debt	789.1		702.4
Less: current maturities	(40.8)		(33.7)
Long-term debt, net of current maturities	$	748.3	$	668.7

(1) The effective interest rate for these notes was 5.25% as of both June 30, 2021 and December 31, 2020.

(2) The effective interest rate for these notes was 6.56% as of December 31, 2020.

(3) The effective interest rate for these loans was 3.25% as of June 30, 2021.

(4) The interest rate for the revolving facility was 3.50% as of both June 30, 2021 and December 31, 2020.

(5) Terminated on June 25, 2021.

Asset Based Revolving Credit Facility

On June 25, 2021, we and certain of our subsidiaries, as co-borrowers and as guarantors, entered into the Fourth Amended and Restated Loan Security Agreement (the “Fourth Loan Agreement”) with certain financial institutions named therein as lenders and Bank of America, N.A., as agent for the lenders, which amended and restated the Third Amended and Restated Loan and Security Agreement, dated as of August 31, 2017 (the “Third Loan Agreement”). Among other things, the Fourth Loan Agreement provides for revolving commitments of $300.0 million (the “Revolving Facility”) and extended the maturity date to June 25, 2026. The Fourth Loan Agreement also amended certain terms of the Third Loan Agreement, including, without limitation, permitting the incurrence of the loans under the Term Loan Agreement (as defined below). In connection with entering into the Fourth Loan Agreement, we incurred $1.5 million of debt issuance costs.

The obligations under the Fourth Loan Agreement are secured by first priority security interests in accounts receivable, inventory and certain other personal property of the Company and its subsidiaries (the “ABL Collateral”) and second priority liens on and security interests in certain real property of the Company's subsidiaries and certain personal property of the Company and its subsidiary guarantors that is not ABL Collateral (the “Term Loan Collateral”).

As of June 30, 2021, we had $1.1 million of undrawn standby letters of credit under our Revolving Facility. Loans under the Revolving Facility are in the form of either base rate loans or London Interbank Offered Rate (“LIBOR”) loans denominated in U.S. dollars.

Our actual maximum credit availability under the Revolving Facility varies from time to time and is determined by calculating the value of our eligible accounts receivable, inventory, mixer trucks and machinery, minus reserves imposed by the lenders and certain other adjustments. Our availability under the Revolving Facility at June 30, 2021 was $214.7 million. We are required, upon the occurrence of certain events, to maintain a fixed charge coverage ratio of at least 1.0 to 1.0 for each period of 12 calendar months. The Fourth Loan Agreement contains customary representations, warranties, covenants and events of default. As of June 30, 2021, we were in compliance with all covenants under the Fourth Loan Agreement.

Term Loans

On June 25, 2021, we entered into a secured term loan agreement (the “Term Loan Agreement”) with certain subsidiaries, as guarantors, JPMorgan Chase Bank, N.A., as administrative agent and collateral agent, and the lenders and other parties named therein. The Term Loan Agreement provides for $300.0 million in aggregate principal amount of term loans (the “Term Loans”), which will mature on June 25, 2028. In connection with entering into the Term Loan Agreement, we incurred $4.6 million of debt issuance costs. Proceeds of the Term Loans will be used for general corporate purposes, including repayment of certain borrowings under the Revolving Facility and to redeem the Company's 6.375% senior unsecured notes due 2024 (the “2024 Notes”), as further discussed below.

The Term Loans bear interest at our option of either: (1) LIBOR (subject to a floor of 0.50%) plus a margin of 2.75% or (2) a base rate (which is equal to the greatest of the prime rate, the Federal Reserve Bank of New York effective rate plus 0.50% and LIBOR plus 1.00%, and is subject to a floor of 1.50%) plus a margin of 1.75%. Additionally, the Term Loans were issued at a price of 99.75%. The Term Loans are secured by a first priority lien on and security interest in the Term Loan Collateral and a second priority security interest in the ABL Collateral. The Term Loan Agreement contains customary representations, warranties, covenants and events of default, but does not contain any financial maintenance covenants. As of June 30, 2021, we were in compliance with all covenants under the Term Loan Agreement.

Termination of Delayed Draw Term Loan Facility

On June 25, 2021, in connection with entering into the Term Loan Agreement, the Company terminated the Credit and Guaranty Agreement, dated as of April 17, 2020, among the Company, certain subsidiaries as guarantors, Bank of America, N.A., as administrative agent and collateral agent, the lenders and other parties named therein (the “Delayed Draw Term Loan Agreement”). The Delayed Draw Term Loan Agreement provided for a $178.7 million delayed draw term loan facility and was scheduled to mature on May 1, 2025. There were no outstanding borrowings under the Delayed Draw Term Loan Agreement. The Delayed Draw Term Loan was secured by a first priority lien on and secured interest in the Term Loan Collateral. During the three months ended June 30, 2021, we wrote off $2.3 million of unamortized debt issuance costs for this facility as a loss on extinguishment of debt.

Redemption of 6.375% Senior Unsecured Notes Due 2024

On June 26, 2021, we redeemed $200.0 million of outstanding 2024 Notes, which represented all outstanding 2024 Notes, at a price of 101.594% of the principal amount thereof plus accrued, unpaid interest. During the three months ended June 30, 2021, we incurred a $3.1 million pre-tax loss on the redemption of the 2024 Notes, which included the redemption premium of $3.2 million and a $1.4 million write-off of unamortized debt issuance costs, net of $1.5 million of unamortized issuance premium.

Fair Value of Debt

The fair value of our 5.125% senior unsecured notes due 2029 (the “2029 Notes”), which was estimated based on broker/dealer quoted market prices, was $436.6 million as of June 30, 2021. The carrying values of the outstanding amounts under our Term Loans, Revolving Facility and our operating and finance lease assets and liabilities approximate fair value due to the nature of the underlying collateral associated with the debt along with floating interest rates.