Debt

12 Months Ended

Dec. 31, 2022

Debt Disclosure [Abstract]

Debt

12. Debt

First Lien Term Loan Facility

We have a $700.0 million term loan under an agreement with various lenders (“First Lien Term Loan Facility”) that accrues interest at a rate per annum equal to the LIBO Screen Rate plus a variable margin based on our most recently determined Net Leverage Ratio (as defined in the agreement), ranging from 2.75% to 3.00%. The effective interest rate on the First Lien Term Loan Facility for the years ended December 31, 2022, 2021 and 2020 was 5.02%, 3.40% and 3.97%, respectively. The First Lien Term Loan Facility requires quarterly principal payments through September 2025, with any remaining unpaid principal and any accrued and unpaid interest due on the maturity date of October 10, 2025. We may prepay the First Lien Term Loan Facility without penalty. The First Lien Term Loan Facility is collateralized by substantially all of our assets and 100% of the equity interest of GoodRx.

Our debt balance is as follows:

	December 31,
(in thousands)	2022			2021
Principal balance under First Lien Term Loan Facility	$	667,068		$	674,097
Less: Unamortized debt issuance costs and discounts		(8,243	)		(11,210	)
	$	658,825		$	662,887

Amortization of debt issuance costs and discounts related to our term loan of $3.0 million was recognized as interest expense in the consolidated statements of operations for each of the years ended December 31, 2022, 2021 and 2020.

As of December 31, 2022, we were subject to a financial covenant requiring maintenance of a Net Leverage Ratio not to exceed 8.2 to 1.0 and other nonfinancial covenants under the First Lien Term Loan Facility. Additionally, GoodRx is restricted from making dividend payments, loans or advances to us. At December 31, 2022, we were in compliance with our covenants.

The following table presents details of the future principal payments under the First Lien Term Loan Facility at December 31, 2022:

(in thousands)
Year Ending December 31,
2023	$	7,029
2024		7,029
2025		653,010
Total principal payments	$	667,068

Revolving Credit Facility

We have a revolving credit facility for up to $100.0 million ("Revolving Credit Facility") which expires on October 11, 2024. The Revolving Credit Facility bears interest at a rate equal to the LIBO Screen Rate plus a variable margin based on our most recently determined Net Leverage Ratio (as defined in the agreement), ranging from 2.50 to 3.00% on used amounts and 0.25 to 0.50% on unused amounts. In addition, the Revolving Credit Facility has a fixed fronting fee of 0.125% per annum for aggregate undrawn and disbursed but unreimbursed letters of credit. We had no borrowings against the Revolving Credit Facility as of December 31, 2022 and 2021.

We had outstanding letters of credit issued against the Revolving Credit Facility for $9.2 million as of December 31, 2022 and 2021, respectively, which reduces our available borrowings under the Revolving Credit Facility. The outstanding letters of credit principally relate to a facility lease and will decrease by $0.9 million per year commencing in 2023.