DEBT (Tables)

6 Months Ended

Jun. 30, 2024

As of June 30, 2024 and December 31, 2023, our total long-term debt and finance lease obligations are summarized as follows (in thousands):


	June 30, 2024		December 31, 2023
	(unaudited)

2022 ABL Credit Facility	$	114,006	$	113,415
ME/RE Loans1	23,157		24,061
Uptiered Loan1	135,881		129,436
Incremental Term Loan1	39,235		38,758
Equipment Finance Loan	2,349		—
Total	314,628		305,670
Finance lease obligations	5,479		5,756
Total long-term debt and finance lease obligations	320,107		311,426
Current portion of long-term debt and finance lease obligations	(7,087)		(5,212)
Total long-term debt and finance lease obligations, less current portion	$	313,020	$	306,214

1 Comprised of principal amount outstanding, less unamortized discount and issuance costs. See below for additional information.

The terms of the 2022 ABL Credit Facility are described in the table below (dollar amounts are presented in thousands):


	Revolving Credit Loans	Delayed Draw Term Loan
Maturity date	8/11/2025	8/11/2025
Stated interest rate	SOFR + applicable margin (base + applicable margin 1)	SOFR + 10% (Base + 9%)
Actual interest rate:
6/30/2024	10.09%	15.44%
6/30/2023	9.92%	15.27%
Interest payments	monthly	monthly
Cash paid for interest
YTD 6/30/2024	$3,816	$2,748
YTD 6/30/2023	$2,955	$2,583
Unamortized balance of deferred financing cost
6/30/2024	$184	$—
12/31/2023	$267	$—
Available amount at 6/30/2024	$12,169	$—

1 Applicable margin ranges based on EBITDA as defined in the 2022 ABL Credit Agreement

The terms of ME/RE Loans are described in the table below (dollar amounts are presented in thousands):


Maturity date						8/11/2025
Stated interest rate						SOFR + 5.75% + 0.11% credit spread adjustment
Principal payments						$237 monthly
Effective interest rate1
6/30/2024						17.38%
6/30/2023						16.54%
Actual interest rate1
6/30/2024						11.19%
6/30/2023						11.02%
Interest payments						monthly
Cash paid for interest
YTD 6/30/2024						$1,436
YTD 6/30/2023						$—
Balances at 6/30/2024
Principal balance						$24,402
Unamortized balance of debt issuance cost						$(1,245)
Net carrying balance						$23,157
Balances at 12/31/2023
Principal balance						$25,823
Unamortized balance of debt issuance cost						$(1,762)
Net carrying balance						$24,061

1 The effective interest rate as of June 30, 2024, consisted of an 11.19% variable interest rate paid in cash and an additional 6.19% due to non-cash amortization of the related debt issuance costs. The effective interest rate as of June 30, 2023, consisted of an 11.02% variable interest rate paid in cash and an additional 5.52% due to non-cash amortization of the related debt issuance costs.

The terms of Uptiered Loan and Incremental Term Loan are described in the table below (dollar amounts are presented in thousands):


	Uptiered Loan	Incremental Term Loan
Maturity date	12/31/2027 (12/31/2026 if outstanding balance is greater than $50 million)	12/31/2026
Stated interest rate
6/30/2024	9.5% PIK and 4.0% cash2	12% paid in cash
6/30/2023	12% PIK	N/A
Principal payments	at maturity	$356 quarterly
Effective interest rate
6/30/2024	14.56%3	22.96%4
6/30/2023	12.86%3	N/A
Interest payments	cash quarterly/PIK monthly	quarterly
Cash paid for interest
YTD 6/30/2024	$1,429	$2,854
YTD 6/30/2023	$—	N/A
PIK interest added to principal
YTD 6/30/2024	$6,376	$—
YTD 6/30/2023	$7,686	N/A
Balances at 6/30/2024
Principal balance 1	$136,463	$47,339
Unamortized balance of debt issuance cost	$(582)	$(8,104)
Net carrying balance	$135,881	$39,235
Balances at 12/31/2023
Principal balance 1	$130,087	$48,052
Unamortized balance of debt issuance cost	$(651)	$(9,294)
Net carrying balance	$129,436	$38,758
Available amount at 6/30/2024	$—	$10,000

___________

1 The principal balance of the Uptiered Loan is made up of $22.5 million drawn on November 9, 2021, $27.5 million drawn on December 8, 2021, and $57.0 million added as part of the exchange agreement on October 4, 2022. In addition, the principal balance also includes paid-in-kind (“PIK”) interest recorded to date of $28.6 million and $22.2 million as of June 30, 2024 and December 31, 2023, respectively, and PIK fees of $0.9 million incurred as of December 31, 2022.

2 Cash and PIK split is based on the Net Leverage Ratio as defined in the A&R Term Loan Credit Agreement. Cash interest rate increased by 1.5% on January 31, 2024.

3 The effective interest rate on the Uptiered Loan as of June 30, 2024 consisted of a 13.50% stated interest rate paid in PIK and cash and an additional 1.06% due to the non-cash amortization of the related debt issuance costs. The effective interest rate on the Uptiered Loan as of June 30, 2023 consisted of a 12.00% stated interest rate paid in PIK and an additional 0.86% due to the non-cash amortization of the related debt issuance costs.

4 The effective interest rate on the Incremental Term Loan as of June 30, 2024 consisted of a 12.00% stated interest rate paid in cash and an additional 10.96% due to the non-cash amortization of the related debt issuance costs.