Debt

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

Debt

12. Debt

As of March 31, 2023 and December 31, 2022 the carrying values of debt were as follows:

			March 31, 2023			December 31, 2022
	Issuance date	Maturity date	Amount (in thousands)		Effective Interest Rate	Amount (in thousands)		Effective Interest Rate
2018 Credit Facility	October 2018	October 2025	$	185,100	8.1% - 8.7%	$	185,650	3.9% - 8.1%
Less: Unamortized issuance discount and issuance costs, net				759			834
Less: Debt, current				1,900			1,900
Debt, non-current			$	182,441		$	182,916

In October 2018, the Company entered into the 2018 Credit Facility, comprising a $220.0 million term loan (the “Term Loan”) and $75.0 million revolving credit facility. Effective March 1, 2023, the Company entered into an amendment to the 2018 Credit Facility to amend the alternate base interest rate (“ABR”) from the LIBOR (as defined in the 2018 Credit Facility) to the SOFR and to make such other related changes. Loans under the amendment effective March 1, 2023 accrue interest based upon, at the Company’s option, either at an ABR or an adjusted term SOFR Rate, in each case, an applicable margin. The applicable margin for the Term Loan is 2.75% in the case of a ABR loan and 3.75% in the case of a Term Benchmark loan, and the applicable margin for the revolving loan ranges from 0.75% to 1.50% in the case of a ABR loan and 1.75% to 2.50% in the case of a Term Benchmark loan, and is based on the Company’s leverage ratio. The Company will make quarterly principal payments of $550,000 on the Term Loan with any remaining principal amounts due on October 10, 2025. The principal amount on the revolving credit facility is due and all revolver commitments terminate on October 10, 2023.

As of March 31, 2023, the Company had $74.0 million of borrowing available under the line of credit portion of the 2018 Credit Facility.

The Company’s obligations under the 2018 Credit Facility are guaranteed by certain of its subsidiaries and secured by liens on substantially all of the assets of the Company and such subsidiaries. The 2018 Credit Facility contains financial, affirmative and negative covenants that, if violated, may require the Company to pay down the loans earlier than the stated maturity dates with higher interest rates. As of March 31, 2023, the Company was compliant with all of its debt covenant requirements in the 2018 Credit Facility. The Company believes that it will continue to comply with the terms of the loan agreements through the stated maturity dates. However, if the Company’s projections do not materialize, the Company may require additional equity or debt financing. There can be no assurance that additional financing, if required, will be available on terms satisfactory to the Company.

As of March 31, 2023, future minimum payment obligations of principal amounts due by year under the 2018 Credit Facility were as follows (in thousands):

Remainder of 2023	$	1,650
2024		2,200
2025		181,250
Total principal outstanding	$	185,100