Debt and Credit Agreements

9 Months Ended

Sep. 30, 2024

Debt Disclosure [Abstract]

Debt and Credit Agreements

Debt and Credit Agreements

Long-term debt consists of the following:

(In thousands)	September 30 2024		December 31 2023
Senior Secured Credit Facilities:
Term Loan	$	483,750	$	487,500
Revolving Credit Facility	437,000		422,000
5.75% Senior Notes	475,000		475,000
Other financing payable (including finance leases) in varying amounts	67,638		44,469
Total debt obligations	1,463,388		1,428,969
Less: deferred financing costs	(13,568)		(11,974)
Total debt obligations, net of deferred financing costs	1,449,820		1,416,995
Less: current maturities of long-term debt	(17,952)		(15,558)
Long-term debt	$	1,431,868	$	1,401,437

In September 2024, the Company amended its Senior Secured Credit Facilities to, among other things, extend the term of the Revolving Credit Facility to September 5, 2029 and adjust the limit to $625.0 million. In addition, the Company retained $50.0 million of its existing revolving commitments which mature on March 10, 2026. The extended Revolving Credit Facility bears interest at a rate, depending on total net leverage, ranging from 75 to 125 basis points over base rate or 175 to 225 basis points over SOFR and the existing Revolving Credit Facility bears interest at a rate, depending on total net leverage, ranging from 50 to 175 basis points over base rate or 150 to 275 basis points over SOFR, in each case, subject to zero floor. The Company expensed $0.3 million of previously recorded deferred financing costs and capitalized $4.4 million of fees incurred related to the amendment.

Also as a result of this amendment, the net debt to consolidated adjusted EBITDA ratio covenant is 4.75x for the quarter ended September 30, 2024, and decreases to 4.50x for the quarter ended June 30, 2025, 4.25x for the quarter ended December 31, 2025 and 4.00x thereafter. The Company's required coverage of consolidated interest charges is set at a minimum of 2.75x through the end of 2024 and increases to 3.00x beginning with the first quarter of 2025.

At September 30, 2024, the Company was in compliance with its debt covenants under the Senior Secured Credit Facilities, with a total net debt to Consolidated Adjusted EBITDA ratio of 3.99x and a total interest coverage ratio of 3.15x. The Company believes it will continue to maintain compliance with these covenants based on its current outlook. However, the Company's estimates of compliance with these covenants could change in the future with a deterioration in economic conditions, higher than forecasted interest rates, the timing of working capital including the collection of receivables, an inability to realize increased pricing and implement cost reduction initiatives that mitigate the impacts of inflation and other factors that may adversely impact its compliance with covenants.

Facility Fees and Debt-Related Income (Expense)

The components of the Condensed Consolidated Statements of Operations caption Facility fees and debt-related income (expense) were as follows:

	Three Months Ended				Nine Months Ended
	September 30				September 30
(In thousands)	2024		2023		2024		2023
Gain (loss) on extinguishment of debt	$	(325)	$	—	$	(325)	$	—
Unused debt commitment and amendment fees	—		—		—		(12)
Securitization and factoring fees	(2,653)		(2,806)		(8,362)		(7,887)
Facility fees and debt-related income (expense)	$	(2,978)	$	(2,806)	$	(8,687)	$	(7,899)