Credit Arrangements

9 Months Ended

Sep. 30, 2023

Credit Arrangements

Credit Arrangements

Note 8 — Credit Arrangements

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

	September 30,		December 31,
	2023		2022
Term loan	$	897,752	$	933,188
Revolving credit facility		120,000		100,000
Commercial equipment notes		68,089		98,064
Mortgage notes		19,838		20,483
Total debt		1,105,679		1,151,735
Unamortized debt issuance costs		(6,927)		(8,283)
Total debt, net	$	1,098,752	$	1,143,452
Less: current portion		(85,233)		(78,137)
Long-term debt, net of current portion	$	1,013,519	$	1,065,315

The weighted average interest rate on total debt outstanding at September 30, 2023 and December 31, 2022 was 6.9% and 6.2%, respectively.

On August 1, 2022, we entered into the Third Amended and Restated Credit Agreement (the “Amended Credit Agreement”), which increased our term loan to an aggregate principal amount of $945.0 million (the “Term Loan”) and increased our revolving credit facility to $325.0 million (the “Revolving Credit Facility”), under which the lenders agreed to make loans on a revolving basis from time to time and to issue letters of credit for up to the $325.0 million committed amount. The maturity date of the Amended Credit Agreement is August 1, 2027. At September 30, 2023, commercial letters of credit outstanding were $37.8 million. In addition to the commercial letters of credit, there were $120.0 million of outstanding borrowings under the Revolving Credit Facility, and available borrowing capacity was $167.2 million at September 30, 2023.

The Amended Credit Agreement contains various restrictive and financial covenants including, among others, a net senior debt/EBITDA ratio and minimum EBITDA to cash interest ratio. In addition, the Amended 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 Amended Credit Agreement at September 30, 2023.

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 $165.0 million of the debt outstanding under our Term Loan from variable LIBOR to a fixed rate of 2.89% per annum, plus an applicable margin. The interest rate swap matured on July 10, 2023. See Note 9 – “Derivative Instruments”.

On January 31, 2023, we entered into a second interest rate swap agreement to manage our exposure to the fluctuations in variable interest rates. The swap effectively exchanged the interest rate on $300.0 million of the debt outstanding under our Term Loan from variable to a fixed rate of 4.095% per annum, plus an applicable margin, which was 2.25% at September 30, 2023. The interest rate swap matures on January 31, 2025. See Note 9 – “Derivative Instruments”.

Canadian Credit Facilities

We have credit facilities totaling $14.0 million in Canadian dollars for the purposes of issuing commercial letters of credit and providing funding for working capital. At September 30, 2023, commercial letters of credit outstanding were $0.7 million in Canadian dollars and there were no outstanding borrowings. Available capacity at September 30, 2023 was $13.3 million in Canadian dollars.