Debt and Financing Arrangements

6 Months Ended

Jun. 30, 2025

Debt Disclosure [Abstract]

Debt and Financing Arrangements

Debt and Financing Arrangements

On February 21, 2023, the Company entered into a credit agreement with PNC as the administrative agent and sole lender (the "Credit Agreement"), that provides for, among other things, a three-year unsecured revolving credit facility with a borrowing capacity of up to $250.0 million (the "Revolver") that matures on February 21, 2026. Included in the Revolver is a $20.0 million sublimit for standby letters of credit and a $35.0 million sublimit for swingline loans, each subject to certain conditions. Funds are available under the Revolver for working capital, capital expenditures, and other lawful corporate purposes, including, but not limited to, acquisitions and common stock repurchases, subject in each case to compliance with certain financial covenants, as defined in the Credit Agreement. As of June 30, 2025, there was no outstanding balance on the Revolver.

As of June 30, 2025, the Company is in compliance with its covenants under the Credit Agreement.

The Company's subsidiary, VOXX, which was acquired on April 1, 2025 (see Note 16), has a loan agreement with the shareholders of one of its joint ventures. The loan balance outstanding at June 30, 2025 was $3.9 million and represents the portion of the loan payable to the joint venture partner. A similar loan balance due to VOXX from the joint venture partner eliminates in consolidation. All amounts outstanding under the loan will mature and become payable on September 8, 2031. The loan may be prepaid subject to the approval of the board of directors of the joint venture and must be repaid if either a put or call option is exercised in accordance with the joint venture agreement. The rate of interest for the shareholder loan is

2.5% and the loan is secured by a second priority lien on and secured interest in all assets of VOXX's subsidiary Onkyo Technology KK ("Onkyo").