Debt

6 Months Ended

Jun. 30, 2022

Debt

Debt

Note 8 — Debt

Long-term debt and credit facilities consists of the following (in thousands):

	June 30,		December 31,
	2022		2021
Term loan	$	505,469	$	520,281
Revolving credit facility		65,000		—
Commercial equipment notes		113,335		107,934
Mortgage notes		20,899		37,445
Total debt		704,703		665,660
Unamortized debt issuance costs		(3,673)		(4,198)
Total debt, net	$	701,030	$	661,462
Less: current portion		(63,116)		(67,230)
Long-term debt, net of current portion	$	637,914	$	594,232

The weighted average interest rate on total debt outstanding at June 30, 2022 and December 31, 2021 was 3.8% and 2.8%, respectively.

Credit Agreement

Our credit agreement consists of a $592.5 million term loan (the “Term Loan”) and a $200.0 million revolving credit facility (the “Revolving Credit Facility” and together with the Term Loan, the “Credit Agreement”), whereby the lenders agreed to make loans on a revolving basis from time to time and to issue letters of credit for up to the $200.0 million committed amount, and the Credit Agreement contains an accordion feature that would allow us to increase the Term Loan or the borrowing capacity under the Revolving Credit Facility by up to $75.0 million. The maturity date of the credit agreement is January 15, 2026. At June 30, 2022, there was $65.0 million of outstanding borrowings under the Revolving Credit Facility, commercial letters of credit outstanding were $29.3 million, and available borrowing capacity was $105.7 million.

The Credit Agreement contains various restrictive and financial covenants including, among others, a senior debt/EBITDA ratio and debt service coverage requirements. In addition, the Credit Agreement includes restrictions on investments, change of control provisions and provisions in the event we dispose of more than 20% of our total assets.

We were in compliance with the covenants for the Credit Agreement at June 30, 2022.

On September 13, 2018, we entered into an interest rate swap agreement to manage our exposure to the fluctuations in variable interest rates. The swap effectively exchanged the interest rate on 75% of the debt outstanding under our original Term Loan from variable LIBOR to a fixed rate of 2.89% per annum, in each case plus an applicable margin, which was 2.25% at June 30, 2022.

Canadian Credit Facilities

We have a demand credit facility for $4.0 million in Canadian dollars with a Canadian bank for purposes of issuing commercial letters of credit in Canada. At June 30, 2022, commercial letters of credit outstanding were $0.7 million in Canadian dollars, and the available borrowing capacity was $3.3 million in Canadian dollars. The credit facility contains a working capital restrictive covenant for OnQuest Canada, ULC, our wholly owned subsidiary. At June 30, 2022, OnQuest Canada, ULC was in compliance with the covenant.

We have a credit facility for $10.0 million in Canadian dollars with CIBC Bank for working capital purposes in the normal course of business (“Working Capital Credit Facility”). At June 30, 2022, there were no outstanding borrowings under the Working Capital Credit Facility, and available borrowing capacity was $10.0 million in Canadian dollars. The Working Capital Credit Facility contains a cross default restrictive covenant where a default under our Credit Agreement will represent a default in the Working Capital Credit Facility.