Debt Obligations

12 Months Ended

Dec. 31, 2023

Debt Disclosure [Abstract]

Debt Obligations

Note 12. Debt Obligations

Debt obligations consists of the following:

	As of			As of
	December 31,			December 31,
	2023			2022
Revolver facility	$	90,700		$	80,900
Debt issuance costs		(1,848	)		(2,783	)
Revolver facility, net	$	88,852		$	78,117
Term Loan	$	201,875		$	212,500
Debt issuance costs		(883	)		(1,393	)
Term loan, net	$	200,992		$	211,107
Total debt obligations	$	289,844		$	289,224

The principal balance consists of the following tranches:

	December 31, 2023
	Principal Amount		Base Rate			SOFR Rate			Rate Expiration Date
Term Loan	$	118,750		2.10	%		5.18	%	6/28/2024
Term Loan		83,125		2.10	%		5.45	%	4/18/2024
Revolver Facility		16,500		2.10	%		5.39	%	2/29/2024
Revolver Facility		10,500		2.10	%		5.36	%	1/29/2024
Revolver Facility		14,000		2.10	%		5.35	%	3/27/2024
Revolver Facility		6,000		2.10	%		5.41	%	1/23/2024
Revolver Facility		2,000		2.10	%		5.36	%	1/29/2024
Revolver Facility		12,000		2.10	%		5.39	%	3/14/2024
Revolver Facility		9,500		2.10	%		5.42	%	1/8/2024
Revolver Facility		3,500		2.10	%		5.39	%	1/30/2024
Revolver Facility		5,500		2.10	%		5.39	%	2/28/2024
Revolver Facility		3,500		2.10	%		5.34	%	1/4/2024
Revolver Facility		2,100		2.10	%		5.38	%	3/7/2024
Revolver Facility		4,600		2.10	%		5.37	%	3/11/2024
Revolver Facility		1,000		2.10	%		5.36	%	1/22/2024
Total	$	292,575

Revolving Credit Facility and Term Loan

On December 22, 2021, the Company entered into a new credit agreement (the "Credit Agreement") with JPMorgan, in its capacity as administrative agent and collateral agent, and Texas Capital Bank, as joint lead arrangers and joint bookrunners, and the other loan parties party thereto. The Credit Agreement consists of two facilities. The first is a revolving credit facility with an available balance of $125 million (the "Revolver Facility"). The second is a term loan for $125 million (the "Term Loan"). In addition to the Term Loan and Revolver Facility, the Credit Agreement also includes a $125 million accordion feature. In October 2022, the accordion feature was exercised with the acquisition of WTI at which point it was split into $87.5 million worth of term loan and $37.5 million of revolver.

Both facilities are "Term SOFR Loans" meaning loans bearing interest based upon the "Adjusted Term SOFR Rate". The Adjusted Term SOFR Rate is the Secured Overnight Financing Rate ("SOFR") at the date of election, plus 2.10%. The Company can elect one or three months for the Revolver Facility and three or six months for the Term Loan. Principal for the Term Loan is contractually repaid at a rate of 1.25% on the term loan quarterly effective March 31, 2023. The Revolving Credit Facility has no contractual principal repayments until maturity, which is December 22, 2025 for both facilities. Certain P10 subsidiaries are encumbered by this debt agreement.

The Credit Agreement contains affirmative and negative covenants typical of such financing transactions, and specific financial covenants which require P10 to maintain a minimum leverage ratio. As of December 31, 2023, P10 was in compliance with its financial covenants required under the facility. For the years ended December 31, 2023, 2022, and 2021, $20.4 million, $8.4 million, and $22.2 million of interest expense was incurred, respectively.

Debt Payable

Future principal maturities of debt as of December 31, 2023 are as follows:

2024	$	10,625
2025		281,950
2026		-
Thereafter		-
	$	292,575

Debt Issuance Costs

Debt issuance costs are offset against the Revolver Facility and Term Loan. Unamortized debt issuance costs for the Revolver Facility and Term Loan as of December 31, 2023 and December 31, 2022 were $2.7 million and $4.2 million, respectively.

Amortization expense related to debt issuance costs totaled $1.4 million for the year ended December 31, 2023, $1.1 million for the year ended December 31, 2022 and $6.0 million for the year ended December 31, 2021. This is included in interest expense, net on the Consolidated Statements of Operations.