Debt

9 Months Ended

Sep. 30, 2020

The following is a summary of the Company’s debt:


		September 30, 2020				December 31, 2019
Type	Maturity	Interest Rate		Carrying Value		Interest Rate		Carrying Value
Senior secured notes	2026	4.500	%	700,000		4.500	%	700,000
Term loan facility	2026	3.161	%	1,250,550		5.049	%	900,000
Revolving credit facility	2024	—	%	—		5.049	%	65,000

Total debt outstanding				1,950,550				1,665,000
Deferred financing charges				(24,963)				(25,205)
Term loan facility, discount				(1,994)				(2,184)
Short-term debt, including current portion of long-term debt				(12,600)				(9,000)
Long-term debt, net of current portion and deferred financing charges				$	1,910,993			$	1,628,611

In connection with the DRG acquisition, the Company incurred an incremental $360,000 of borrowings under our term loan facility and used the net proceeds from such borrowings to fund a portion of the DRG acquisition and to pay related fees and expenses. The additional term loan borrowings are covered by the same terms and covenant

requirements of the existing term loan facility as described in the annual report on form 10-K as of December 31, 2019.

In addition, the Company secured the backstop of a $950,000 fully committed bridge facility in connection with the DRG acquisition. However, the Company obtained all required financing with proceeds from the additional term loan borrowings and through a primary equity offering in February 2020. As such, the bridge facility remained undrawn through its expiration on closing of the acquisition.

On October 1, 2020, in connection with the CPA Global acquisition, the Company incurred an incremental $1,600,000 of borrowings under our term loan facility and used the net proceeds from such borrowings to fund the repayment of CPA Global's parent company outstanding debt of $2,052,926 of outstanding debt. The additional term loan borrowings are covered by the same terms and covenant requirements of the existing term loan facility as described in the annual report on form 10-K as of December 31, 2019. Previously, the Company had secured the backstop of a $1,500,000 fully committed bridge facility. However, the Company obtained all required financing with proceeds from the additional term loan borrowings and the bridge facility remained undrawn through its expiration on closing of the acquisition. See Note 22 — "Subsequent Events" for additional information regarding the CPA Global acquisition.

During the nine months ended September 30, 2020, the Company paid down $65,000 on the revolving credit facility. The revolving credit facility has remained undrawn in the period subsequent to the pay down. The revolving credit facility is subject to a commitment fee of 0.50% per annum.

With respect to the credit facilities, the Company may be subject to certain maintenance covenants, including compliance with total first lien net leverage ratio, if certain conditions are met. These conditions were not met and the Company was not required to test compliance with these covenants as of September 30, 2020.

The obligations of the Borrowers under the credit facilities are guaranteed by UK Holdco and certain of its restricted subsidiaries and are secured by substantially all of UK Holdco's and certain of its restricted subsidiaries’ assets (with customary exceptions described in the credit facilities). UK Holdco and its restricted subsidiaries are subject to certain covenants including restrictions on UK Holdco’s ability to pay dividends, incur indebtedness, grant a lien over its assets, merge or consolidate, make investments, or make payments to affiliates.

As of September 30, 2020, letters of credit totaling $4,958 were collateralized by the revolving credit facility. Notwithstanding the revolving credit facility, as of September 30, 2020, the Company had cash collateralized letters of credit totaling $37, all of which were not collateralized by the revolving credit facility. The Company’s cash from operations is expected to meet repayment needs on outstanding borrowings for a period of 12 months after the financial statement issuance date.

The carrying value of the Company’s variable interest rate debt, excluding unamortized debt issuance costs, approximates fair value due to the short-term nature of the interest rate benchmark rates. The fair value of the fixed rate debt is estimated based on market observable data for debt with similar prepayment features. The fair value of the Company’s debt was $1,924,197 and $1,692,750 at September 30, 2020 and December 31, 2019, respectively. The debt is considered a Level 2 liability under the fair value hierarchy.

On October 1, 2020, the Company borrowed $60,000 on the existing Revolving Credit Facility and used the net proceeds from such borrowings to fund the debt exinguishment costs in connection with funding of the repayment of CPA Global's parent company outstanding debt. $187,663 remains undrawn subsequent to the borrowing. See Note 22 — "Subsequent Events" for additional information regarding the CPA Global acquisition.