Debt and Credit Agreements

3 Months Ended

Mar. 31, 2025

Debt Disclosure [Abstract]

Debt and Credit Agreements

Debt and Credit Agreements

Long-term debt consists of the following:

(In thousands)	March 31 2025		December 31 2024
Senior Secured Credit Facilities:
Term Loan	$	481,250	$	482,500
Revolving Credit Facility	437,000		407,000
5.75% Senior Notes	475,000		475,000
Other financing payable (including finance leases) in varying amounts	82,656		79,917
Total debt obligations	1,475,906		1,444,417
Less: deferred financing costs	(11,815)		(12,695)
Total debt obligations, net of deferred financing costs	1,464,091		1,431,722
Less: current maturities of long-term debt	(21,895)		(21,004)
Long-term debt	$	1,442,196	$	1,410,718

In February 2025, the Company entered into an amendment to the Credit Agreement to reset the levels of its covenants, among other changes. As a result of this amendment, the total Net Debt to Consolidated Adjusted EBITDA ratio covenant was set to 4.75x for the quarter ended March 31, 2025, 5.00x for the quarters ended June 30, 2025 and September 30, 2025 and then decreases every six months by 0.25x until reaching 4.00x for the quarter ended June 30, 2027 and thereafter. The interest coverage ratio was set to a minimum of 2.50x for each quarter ended after December 31, 2024. The Company continues to expect that it will continue to maintain compliance with the amended covenants.

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.

At March 31, 2025, the Company was in compliance with all covenants for its Senior Secured Credit Facilities, as amended in February 2025, as the total Net Debt to Consolidated Adjusted EBITDA ratio was 4.31x and the total interest coverage ratio was 3.03x. Based on balances and covenants in effect at March 31, 2025, the Company could increase Net Debt by $142.4 million and still be in compliance with these debt covenants. Alternatively, Consolidated Adjusted EBITDA could decrease by $30.0 million or interest expense could increase by $22.4 million and the Company would remain in compliance with these covenants.

The Company believes it will continue to maintain compliance with these amended 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, the recently imposed tariffs, 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, principally in CE and HE, 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
	March 31
(In thousands)	2025		2024
Unused debt commitment and amendment fees	(188)		—
Securitization and factoring fees	(2,424)		(2,789)
Facility fees and debt-related income (expense)	$	(2,612)	$	(2,789)