DEBT (Tables)

9 Months Ended

Sep. 30, 2024

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


	September 30, 2024		December 31, 2023
	(unaudited)

2022 ABL Credit Facility1	$	112,643	$	113,415
ME/RE Loans1	22,699		24,061
Uptiered Loan1	139,206		129,436
Incremental Term Loan1	39,516		38,758
Equipment Finance Loan	1,882		—
Total	315,946		305,670
Finance lease obligations	5,292		5,756
Total long-term debt and finance lease obligations	321,238		311,426
Current portion of long-term debt and finance lease obligations	(7,056)		(5,212)
Total long-term debt and finance lease obligations, less current portion	$	314,182	$	306,214

1 Comprised of principal amount outstanding, less unamortized debt 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
Scheduled maturity date1	9/30/2027	9/30/2027
Stated interest rate	SOFR + applicable margin (base + applicable margin)	SOFR + applicable margin (base + applicable margin)
Actual interest rate:
9/30/2024	9.57%	15.32%
9/30/2023	10.09%	15.44%
Interest payments	monthly	monthly
Cash paid for interest
YTD 9/30/2024	$5,964	$4,130
YTD 9/30/2023	$4,932	$3,951

Balances at 9/30/2024
Principal balance	$77,905	$35,000
Unamortized balance of debt issuance cost	N/A	$(262)
Net carrying balance	$77,905	$34,738

Balances at 12/31/2023
Principal balance	$78,415	$35,000
Unamortized balance of debt issuance cost	N/A	$—
Net carrying balance	$78,415	$35,000

Unamortized balance of deferred financing cost
9/30/2024	$1,102	N/A
12/31/2023	$267	N/A
Available amount at 9/30/20242	$18,022	$—

1 Amended maturity date is the earlier of (i) the Scheduled Maturity Date and (ii) the Springing Maturity Date (91 days prior to Scheduled Maturity Date of the A&R Term Loan Credit Agreement (defined below), or October 1, 2026).

2 Available amount following the execution of ABL Amendment No.5.

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


Scheduled maturity date1						9/30/2027
Stated interest rate						SOFR + 5.0% + 0.11% credit spread adjustment
Principal payments						$237 monthly
Effective interest rate2
9/30/2024						13.11%
9/30/2023						16.75%
Actual cash interest rate
9/30/2024						10.32%
9/30/2023						11.19%
Interest payments						monthly
Cash paid for interest
YTD 9/30/2024						$2,128
YTD 9/30/2023						$640
Balances at 9/30/2024
Principal balance						$23,692
Unamortized balance of debt issuance cost						$(993)
Net carrying balance						$22,699
Balances at 12/31/2023
Principal balance						$25,823
Unamortized balance of debt issuance cost						$(1,762)
Net carrying balance						$24,061

2 The effective interest rate as of September 30, 2024 consisted of 10.32% variable interest rate paid in cash and an additional 2.79% due to non-cash amortization of the related debt issuance costs. The effective interest rate as of September 30, 2023, consisted of 11.19% variable interest rate paid in cash and an additional 5.56% 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
9/30/2024	9.5% PIK and 4.0% cash2	12% paid in cash
9/30/2023	12% PIK	12% paid in cash
Principal payments	at maturity	$356 quarterly
Effective interest rate
9/30/2024	14.56%3	22.96%4
9/30/2023	12.86%3	23.69%4
Interest payments	cash quarterly/PIK monthly	quarterly
Cash paid for interest
YTD 9/30/2024	$2,775	$4,267
YTD 9/30/2023	$—	$—
PIK interest added to principal
YTD 9/30/2024	$9,661	N/A
YTD 9/30/2023	$10,829	N/A
Balances at 9/30/2024
Principal balance 1	$139,748	$46,983
Unamortized balance of debt issuance cost	$(542)	$(7,467)
Net carrying balance	$139,206	$39,516
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 9/30/2024	$—	$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 of $31.8 million and $22.2 million as of September 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 determined based on the Net Leverage Ratio as defined in the A&R Term Loan Credit Agreement.

3 The effective interest rate on the Uptiered Loan as of September 30, 2024 consisted of 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 September 30, 2023 consisted of 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 September 30, 2024 consisted of 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. The effective interest rate on the Incremental Term Loan as of September 30, 2023 consisted of 12.00% stated interest rate paid in cash and an additional 11.69% due to the non-cash amortization of the related debt issuance costs.