Debt

9 Months Ended

Sep. 30, 2024

Debt Disclosure [Abstract]

Debt

NOTE 9. Debt

On June 7, 2024, the Company entered into the Fifth Amendment to the 2019 Credit Agreement, extending the maturity date of the $100.0 million senior secured first lien revolving facility from July 1, 2024 to March 31, 2026, and decreasing the drawn interest rate margin by 0.50% per annum. The revolving facility otherwise remains subject to substantially the same terms as those set forth in the 2019 Credit Agreement.

On July 1, 2024, the Company executed an agency succession agreement, by and among Barclays Bank PLC as the resigning administrative agent and collateral agent under the 2019 Credit Agreement and Royal Bank of Canada, as the successor administrative agent and collateral agent.

The following table presents the components of long-term debt in the unaudited Condensed Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023.

	September 30,			December 31,			Interest Rate		Effective Interest Rate
(in thousands)	2024			2023			2024	2023	2024	2023
Term Loans
Due July 2026	$	624,693		$	630,680		7.66%	7.77%	8.06%	8.17%
Due December 2028		367,496			371,028		7.66%	7.77%	7.99%	8.10%
Term loan principal outstanding		992,189			1,001,708
Unamortized debt issuance costs		(6,777	)		(8,753	)
Unamortized debt discount		(2,751	)		(3,686	)
Long-term debt, net	$	982,661		$	989,269

The Company elects to use three-month Term SOFR plus a ten-point credit spread adjustment plus the margin on SOFR required by the 2019 Credit Agreement to pay interest on its debt.

The 2019 Credit Agreement contains customary affirmative and negative covenants, including covenants that affect, among other things, the ability of the first lien leverage ratio, measured as of the last day of each fiscal quarter on which outstanding borrowings under the revolving credit facility exceed 35.0% of the commitments thereunder (excluding certain letters of credit), of no greater than 3.80 to 1.00. As of September 30, 2024, there were no outstanding borrowings under the revolving credit facility and the Company was in compliance with its financial performance covenant.

There were no repayments of outstanding term loans under the 2019 Credit Agreement during the three months ended September 30, 2024, and no loss on debt extinguishment was recorded in the period. Repayments of outstanding term loans under the 2019 Credit Agreement totaled $9.5 million for the nine months ended September 30, 2024. The Company recognized a loss on debt extinguishment of $0.1 million in the nine months ended September 30, 2024, due to the repayments of term loan principal.

There were no repayments of outstanding term loans under the 2019 Credit Agreement during the three and nine months ended September 30, 2023, and no loss on debt extinguishment was recorded in these periods.

The following table presents the components of interest expense and other financing costs on the unaudited Condensed Consolidated Statements of Operations for the periods ended September 30, 2024 and 2023.

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
(in thousands)	2024			2023			2024			2023
Interest expense	$	19,431		$	19,457		$	58,096		$	55,140
Amortization of debt issuance costs		776			762			2,333			2,266
Amortization of debt discount		302			305			905			905
Interest rate swap (income) expense		—			(5,115	)		—			(14,004	)
Amortization of deferred gain on terminated interest rate swap		(4,200	)		—			(12,509	)		—
Other		105			171			354			414
Total	$	16,414		$	15,580		$	49,179		$	44,721