Interest Rate Swaps

6 Months Ended

Jun. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Interest Rate Swaps

Interest Rate Swaps

The purpose of the swap agreements is to convert the floating interest rate on the Company's Credit Agreements to a fixed rate. As of June 30, 2023, the notional amount of the interest rate swaps covers approximately 96% of the balance of the Company’s floating rate term loans.

During the three and six months ended June 30, 2023, the change in the fair value of the interest rate swaps were $9.2 million and $3.6 million, respectively, which are reflected as a component of other income (expense) within the unaudited condensed consolidated statements of operations. The Company also recognized $3.5 million and $6.0 million of realized gains for the three and six months ended June 30, 2023, respectively, both reflected within interest expense, net. See Note 10. Fair Value Measurements for the method used to determine fair value of interest rate swaps. The above amounts also includes the Deutsche Bank swap assumed by the Company as part of the SEMTH Acquisition.