Long-Term Debt

3 Months Ended

Mar. 31, 2024

Debt Disclosure [Abstract]

Long-Term Debt

8. Long-Term Debt

The Company’s debt consisted of the following (in thousands):

	March 31, 2024			December 31, 2023
Term loans		537,511		$	539,247
Less: unamortized debt issuance costs		(3,317	)		(3,769	)
Total net debt		534,194			535,478
Less: current portion		(6,896	)		(6,896	)
Long-term debt	$	527,298		$	528,582

The Company’s long-term debt at March 31, 2024 consisted of borrowings under its Eleventh Amended and Restated Credit Agreement (the Credit Agreement), originally entered into on October 2, 2017. Under the Credit Agreement, the Company has been provided borrowing availability in the form of terms loans, additional commitments in term loans (Delayed Draw Term Loan Commitments) and a $20.0 million revolving line of credit (Revolving Loans). The Credit Agreement is secured by substantially all of the Company's assets.

On April 28, 2023, we borrowed $20.0 million of available Delayed Draw Term Loans to finance the acquisition of DAC.

On June 30, 2023, the Credit Agreement was amended to extend the maturity date by eighteen months, extending it from October 2, 2024 to April 2, 2026. In addition, the London Interbank Offered Rate (LIBOR) Rate was replaced with Adjusted Term Secured Overnight Financing Rate (SOFR) as an election in which borrowings under the Credit Agreement accrue interest at the SOFR rate plus a margin of 7.25%.

On August 30, 2023, the Company borrowed $33.0 million of available Delayed Draw Term Loans to finance the acquisition of CAV.

On March 26, 2024, the Credit Agreement was amended to extend the termination date of the Delayed Draw Term Loan Commitment by approximately nine months, extending it from April 1, 2024 to December 31, 2024.

At March 31, 2024, there was $537.5 million outstanding under the Credit Agreement, and there remained availability of $47.0 million in Delayed Draw Term Loan Commitments and $20.0 million in Revolving Loans. Outstanding term loans and Delayed Draw Term Loans mature on April 2, 2026. Revolving Loans, if any, mature on April 2, 2025.

Borrowings under the term loans, the Delayed Draw Term Loans and Revolving Loans may be designated as a SOFR loan or base rate loan at the option of the borrower. The interest rate on the SOFR rate loans accrued interest at the SOFR rate plus a margin of 7.25%. The interest rate on the base rate loans accrue interest at the base rate plus a margin of 6.25%. Interest is paid every one, two, three or six months at the option of the Company. The unused portion of the revolving line of credit carries a commitment fee of 0.50%.

The Credit Agreement requires the maintenance of a quarterly leverage ratio. There are also certain non-financial covenants in place limiting us from, among other things, incurring other indebtedness, creating any liens on our properties, entering into merger or consolidation transactions, disposing of all or substantially all of our assets and payment of certain dividends and distributions. We were in compliance with all financial and nonfinancial covenants of the Credit Agreement as of March 31, 2024.

The Credit Agreement requires mandatory prepayments of the principal amount if there is excess cash flow, as defined, during a calendar year. The Credit Agreement permitted voluntary principal prepayments, in whole or in part, at a premium of 3.0% of the amount prepaid during the first year of the agreement, declining evenly to no premium after October 4, 2021. No voluntary prepayments were made under the Credit Agreement.