Long-Term Debt and Revolving Line of Credit

12 Months Ended

Dec. 31, 2021

Long-Term Debt and Revolving Line of Credit

Long-Term Debt and Revolving Line of Credit

10.   Long-Term Debt and Revolving Line of Credit

Effective August 14, 2017, the Company entered into a credit agreement with lenders for a $250,000 term loan (“Credit Agreement”). The Credit Agreement is a syndicated arrangement with various lenders providing the financing. The $250,000 term loan is due to mature on August 14, 2024. The Company also entered into a $20,000 revolving line of credit with lenders with a sub-commitment for issuance of letters of credit of $10,000.

The Company and lenders entered into Amendment No. 1 to the Credit Agreement on January 25, 2018, where an additional tranche of $25,000 was added to the term loan. The amortization schedule of the new tranche was made coterminous with the rest of the term loan. There were no other changes to the terms of the Credit Agreement.

The Company and lenders entered into Amendment No. 2 to the Credit Agreement on April 3, 2018, where an additional tranche of $40,000 was added to the term loan. The amortization schedule of the new tranche was made coterminous with the rest of the term loan. There were no other changes to the terms of the Credit Agreement.

The Company and lenders entered into a third amended and restated loan agreement on June 17, 2021 (“Third Amendment”), which provides for, among other things, (i) the extension of the termination date applicable to the revolving credit commitments under the Credit Agreement to August 2025, (ii) the extension of the maturity date applicable to the term loans under the Credit Agreement to August 2026, and (iii) an increase of approximately $80,000 in commitments available under the revolving line of credit (resulting in an aggregate amount of commitments of $100,000).  The term loan under the Third Amendment has substantially the same terms as the existing term loans and revolving credit commitments. The Credit Agreement is collateralized by substantially all U.S. assets and stock pledges for the non-U.S. subsidiaries and contain various financial and nonfinancial covenants.

As of December 31, 2021 and 2020, available borrowings under the revolving lines of credits were $100,000 and $20,000, respectively. Available borrowings under the revolving lines of credits of $100,000 and $20,000 as of December 31, 2021 and 2020, respectively, were reduced by $239 and $120 standby letter of credit issued to a landlord in lieu of a security deposit.

The Company was in compliance with all covenants as of December 31, 2021 and 2020. Borrowings under the Credit Agreement are subject to a variable interest rate at LIBOR plus a margin. The applicable margins are based on achieving certain levels of compliance with financial covenants.

The effective interest rate was 3.65% and 4.48% for the years ended December 31, 2021 and 2020, respectively, for the Credit Agreement. As discussed previously, the Company entered into interest rate swap agreements that fixed the interest rate.

Interest paid on the Credit Agreement with respect to the term loan amounted to $11,211, $13,960, and $18,520 for the years ended December 31, 2021, 2020, and 2019, respectively. Accrued interest payable on the Credit Agreement with respect to the term loan amounted to $30 and $32 at December 31, 2021 and 2020, respectively, and is included in accrued expenses.  Interest paid on the Credit Agreement with respect to the revolving line of credit amounted to $93, $457, and $174 for the years ended December 31, 2021, 2020, and 2019, respectively. There was $66 accrued interest payable and no accrued interest payable on the revolving line of credit at December 31, 2021 and 2020, respectively.

Effective August 14, 2017, the Company entered into an unsecured credit agreement with another lender for a $100,000 term loan (“Loan Agreement”). The loan bears interest at 8.25% which is payable in semi-annual installments on January and July 15 through August 14, 2025, at which time all outstanding principal and interest are due. Under the Loan Agreement, the Company could voluntarily repay outstanding loans without premium or penalty. On July 15, 2020, the Company made a $20,000 prepayment on the loan, which reduced the amount outstanding to $80,000. On December 28, 2020, the Company repaid the remaining $80,000 aggregate principal amount owed under the Loan Agreement, including $3,000 of accrued interest using a portion of the proceeds from the IPO. The Company's obligations under the Loan Agreement were discharged on that date. Interest paid on the loan amounted to $0, $11,449, and $8,365 for the years ended December 31, 2021, 2020, and 2019, respectively.

Long-term debt consists of the following:

	DECEMBER 31,
	2021		2020
Term loans	$	300,490	$	304,099
Revolving line of credit		—		—
Less: debt issuance costs		(5,724)		(5,319)
Total		294,766		298,780
Current portion of long-term debt		(3,020)		(4,680)
Long-term debt, net of current portion and debt issuance costs	$	291,746	$	294,100

The principal amount of long-term debt outstanding as of December 31, 2021, matures in the following years:

	2022		2023		2024		2025		2026		TOTAL
Maturities	$	3,020	$	3,020	$	3,020	$	3,020	$	288,410	$	300,490

The Credit Agreement requires the Company to make an annual mandatory prepayment as it relates to the Company’s Excess Cash Flow calculation. For the year ended December 31, 2021, and 2020, the Company was required to make a mandatory prepayment on the term loan of $0, and $1,527, respectively. For the third credit agreement, the Company is required to make a quarterly principal payment of $755 on the term loan each quarter starting from the end of September 2021.

The fair values of the Company’s variable interest term loan and revolving line of credit are not significantly different than their carrying value because the interest rates on these instruments are subject to change with market interest rates.