Debt Arrangements

9 Months Ended

Sep. 30, 2024

Debt Disclosure [Abstract]

Debt Arrangements

4. Debt Arrangements

Line of credit

On May 13, 2024, the Company entered into the Sixth Amendment to Third Amended and Restated Loan and Security Agreement (the “Amendment”) to the existing credit facility (“Credit Facility”). The amendment extended the line of credit termination date from April 23, 2025 to April 23, 2027. The line of credit now bears an interest rate equal to the one-month Secured Overnight Financing Rate (“SOFR”) plus an additional rate of 1.80% to 2.80% based on certain financial ratios maintained by the Company. The total amount available under the line of credit as of September 30, 2024 is $30,000.

Notes Payable

The Amendment added a new term loan of $15,000 to the Credit Facility and extended the maturity date of the existing and new term loan (collectively referred to as the “Term Loan”) to April 23, 2027. The interest rate of the Term Loan now bears an interest rate equal to the one-month SOFR plus an additional rate of 1.80% to 2.80% based on certain financial ratios maintained by the Company. The Term Loan is payable in quarterly installments of $1,375 through March 31, 2027, with the remaining balance of the term loan due in a final lump sum payment at maturity on April 23, 2027.

Long-term debt consists of the following:

(in thousands)	December 31, 2023			September 30, 2024
Term loan	$	23,000		$	34,250
Deferred financing costs, net		(31	)		(151	)
Total notes payable		22,969			34,099
Less current portion		(3,977	)		(5,434	)
Notes payable, net of current portion	$	18,992		$	28,665

As of September 30, 2024, future principal payment obligations for long-term debt are as follows for the years ending December 31:

(in thousands)
2024	$	1,375
2025		5,500
2026		5,500
2027		21,875
Total	$	34,250

The Company was in compliance with all debt covenants at September 30, 2024.