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Borrowings and Debt
 12 Months Ended
Dec. 31, 2024
Debt Disclosure [Abstract]  
Borrowings and Debt Borrowings and Debt
The Company’s borrowings and long-term debt were comprised of the following as of the dates indicated (in millions):
December 31, 2024December 31, 2023
(in millions)Carrying valueFair ValueFair Value LevelCarrying valueFair ValueFair Value Level
Revolving credit facility:
$140 million revolving credit facility expiring August 29, 2027(1)(2)
$— $— $— $— 
Total revolving credit facility$— $— $— $— 
Third-party borrowings:
$275 million 4.80% Senior Notes Due July 27, 2026(3)
274.3 271.7 2273.9 263.1 2
Total third-party borrowings
$274.3 $271.7 $273.9 $263.1 
(1)Fair value approximates carrying value because the credit facility has variable interest rates based on selected short term market rates.
(2)On August 29, 2024, Acadian LLC’s $125 million revolving credit facility was terminated and replaced with a new $140 million revolving credit facility.
(3)The difference between the principal amounts and the carrying values of the senior notes in the table above reflects the unamortized debt issuance costs and discounts.
Revolving credit facility
On August 29, 2024, Acadian LLC, Royal Bank of Canada, Goldman Sachs Bank USA, Morgan Stanley Bank, N.A., the Bank of New York Mellon, Bank of America N.A., as an issuing bank, and Citibank, N.A., as an issuing bank and administrative agent (collectively, the “Lenders”), entered into a new revolving credit facility agreement (the “Acadian LLC Credit Agreement”), which replaced Acadian LLC’s revolving credit facility dated as of March 7, 2022 (the “Prior Credit Agreement”). The maturity date of the Prior Credit Agreement was March 7, 2025, and the maturity date of the Acadian LLC Credit Agreement is August 29, 2027.
Borrowings under the Acadian LLC Credit Agreement bear interest, at Acadian LLC’s option, at the per annum rate equal to either (a) the greatest of (i) the prime rate, (ii) the federal funds effective rate plus 0.5% and (iii) the secured overnight financing rate for a one month period plus a credit spread adjustment of 0.10% (“Adjusted Term SOFR”) plus 1%, plus, in each case, an additional amount ranging from 0.5% to 1.0%, with such additional amount based on Acadian LLC’s Leverage Ratio (as defined below) or (b) Adjusted Term SOFR plus an additional amount ranging from 1.5% to 2.0%, with such additional amount based on Acadian LLC’s Leverage Ratio. In addition, a commitment fee is charged based on the average daily unused portion of the revolving credit facility under the Acadian LLC Credit Agreement at a per annum rate ranging from 0.25% to 0.375%, with such amount based on Acadian LLC’s Leverage Ratio.
The weighted average interest rate for the revolving credit facility was 6.93%, 6.19% and 2.64% in 2024, 2023 and 2022, respectively.
Under the Acadian LLC Credit Agreement, the ratio of Acadian LLC’s third-party borrowings to Acadian LLC’s trailing twelve months Adjusted EBITDA, as defined by the Acadian LLC Credit Agreement (the “Leverage Ratio”), cannot exceed 2.5x and the Acadian LLC interest coverage ratio must not be less than 4.0x.
Senior Notes
In July 2016, the Company issued $275.0 million of 4.80% Senior Notes due 2026 (the “2026 Notes”). The $275.0 million 2026 Notes were sold at a discount of $(0.5) million and the Company incurred debt issuance costs of $(3.0) million, which are being amortized to interest expense over the ten-year term. The 2026 Notes can be redeemed at any time prior to the scheduled maturity in part or in aggregate, at the greater of the 100% principal amount at that time or the sum of the remaining scheduled payments discounted at the treasury rate plus 0.5%, together with any related accrued and unpaid interest.
The fair value of the senior notes was determined using broker quotes and any recent trading activity for the notes, which are considered Level II inputs.
As of December 31, 2024, the aggregate maturities of debt commitments, based on their contractual terms, are as follows:
 Future minimum
debt commitments
2025$— 
2026275.0 
2027— 
2028— 
2029— 
Thereafter— 
Total$275.0 
The Company was in compliance with the required covenants related to borrowings and debt facilities as of December 31, 2024.