Debt Obligations

6 Months Ended

Jun. 30, 2024

Debt Disclosure [Abstract]

Debt Obligations

Note 11. Debt Obligations

Debt obligations consists of the following:

	As of			As of
	June 30,			December 31,
	2024			2023
Revolver facility	$	106,100		$	90,700
Debt issuance costs		(1,382	)		(1,848	)
Revolver facility, net	$	104,718		$	88,852
Term Loan	$	196,563		$	201,875
Debt issuance costs		(650	)		(883	)
Term loan, net	$	195,913		$	200,992
Total debt obligations, net	$	300,631		$	289,844

	June 30, 2024
	Principal Amount		Base Rate			SOFR Rate			Rate Expiration Date
Term Loan	$	115,625		2.10	%		5.34	%	7/29/2024
Term Loan		80,938		2.10	%		5.30	%	10/18/2024
Revolver Facility		16,500		2.10	%		5.34	%	8/29/2024
Revolver Facility		7,500		2.10	%		5.32	%	7/29/2024
Revolver Facility		10,000		2.10	%		5.34	%	9/27/2024
Revolver Facility		12,000		2.10	%		5.35	%	9/16/2024
Revolver Facility		5,500		2.10	%		5.34	%	8/28/2024
Revolver Facility		3,000		2.10	%		5.30	%	7/8/2024
Revolver Facility		4,600		2.10	%		5.33	%	7/11/2024
Revolver Facility		2,000		2.10	%		5.33	%	8/23/2024
Revolver Facility		7,500		2.10	%		5.33	%	7/15/2024
Revolver Facility		10,500		2.10	%		5.33	%	7/3/2024
Revolver Facility		16,000		2.10	%		5.32	%	7/22/2024
Revolver Facility		2,000		2.10	%		5.33	%	8/21/2024
Revolver Facility		4,000		2.10	%		5.33	%	7/8/2024
Revolver Facility		5,000		2.10	%		5.33	%	7/11/2024
Total	$	302,663

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 a split of $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 June 30, 2024, P10 was in compliance with its financial and other covenants required under the facility. For the three and six months ended June 30, 2024, $5.8 million and $11.2 million of interest expense was incurred, respectively. For the three and six months ended June 30, 2023, $5.0 million and $9.9 million of interest expense was incurred, respectively.

Debt Payable

Future principal maturities of debt as of June 30, 2024 are as follows:

2024	$	5,313
2025		297,350
2026		-
Thereafter		-
	$	302,663