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Debt (Tables)

3 Months Ended

Mar. 31, 2026

Shentel’s outstanding long-term debt obligations as of March 31, 2026 and December 31, 2025 are as follows:


(in thousands)	Interest Rates	March 31, 2026		December 31, 2025
Shentel Issuer Class A-2 Notes	5.64%	$	489,142	$	489,142
Shentel Issuer Class B Notes	6.03%	78,263		78,263
Shentel Issuer Variable Funding Note ("VFN")	Floating(1)	40,000		—
Shentel Broadband Revolving Credit Facility ("RCF")	Floating(2)	100,000		75,000
Total debt		707,405		642,405
Less: unamortized loan fees		(13,518)		(14,168)
Total debt, net of unamortized loan fees		$	693,887	$	628,237

(1) The VFN bears interest at one-month term SOFR plus a fixed margin. This interest rate was 5.41% at March 31, 2026.

(2) The RCF bears interest at one-month term SOFR plus a margin. The margin is variable and determined by the Company’s net leverage ratio. This interest rate was 6.16% at March 31, 2026 and 6.19% at December 31, 2025.

Schedule of Carrying Values and Estimated Fair Values of Debt Instruments

The carrying amounts of the Company’s long-term debt under the Previous Credit Agreements, which had floating interest rates, approximated their fair values. Similarly, the carrying amount of the Company’s RCF, which has a floating interest rate, approximates its fair value. The estimated fair values of Shentel’s Class A-2 Notes and Class B Notes were based on Level 2 inputs that use interest rates available to us for debt with similar terms and remaining maturities. The fair values of Shentel’s the Class A-2 Notes and Class B Notes were as follows:


(in thousands)	March 31, 2026		December 31, 2025
Shentel Issuer Class A-2 Notes	$	490,805	$	494,278
Shentel Issuer Class B Notes	78,834		77,676

Schedule of Interest Income and Interest Expense Disclosure

Interest expense recorded in Shentel’s unaudited condensed consolidated statements of operations consisted of the following:


	Three Months Ended March 31,
(in thousands)	2026		2025
Interest expense	$	11,126	$	7,262
Less: capitalized interest	(1,691)		(2,370)
Interest expense, net of capitalized interest	$	9,435	$	4,892

Schedule of Variable Interest Entities

The assets and liabilities related to Shentel’s VIE arrangements included in the Company’s unaudited condensed consolidated balance sheets were as follows:


(in thousands)	March 31, 2026		December 31, 2025
ASSETS
Restricted cash and cash equivalents	$	27,311	$	20,945
Accounts receivable	10,319		12,580
Prepaid expenses and other	5,785		5,344
Property, plant and equipment, net	806,243		793,874
Intangible assets, net	8,017		8,234
Operating lease right-of-use assets	10,188		10,199
Deferred charges and other assets	128,022		129,635
Total assets	$	995,885	$	980,811

LIABILITIES
Current liabilities:
Accounts payable	$	7,876	$	7,561
Advanced billings and customer deposits	10,070		8,953
Current operating lease liabilities	1,333		1,236
Accrued liabilities and other	1,663		2,658
Long-term debt, less current maturities, net of unamortized loan fees	594,305		554,288
Non-current operating lease liabilities	4,843		4,925
Other liabilities	29,257		28,703
Total liabilities	$	649,347	$	608,324

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

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+ Details

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Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

+ References + Details