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Debt and Financing
 9 Months Ended
Sep. 30, 2021
Debt Disclosure [Abstract]  
Debt and Financing

3. Debt and Financing

Our outstanding debt as of September 30, 2021, consisted of the following:

(in millions)

 

Par Value

 

 

Discount

 

 

Commitment
Fee

 

 

Debt
Issuance
Costs

 

 

Book Value

 

 

Effective
Interest
Rate

 

Term Loan (a)

 

$

612.5

 

 

$

(16.5

)

 

$

—

 

 

$

(7.3

)

 

$

588.7

 

(b)

 

9.5

%

ABL Facility

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

N/A

 

UST Loan Tranche A(a)

 

 

309.0

 

 

 

—

 

 

 

(14.1

)

 

 

(3.7

)

 

 

291.2

 

(c)

 

6.4

%

UST Loan Tranche B

 

 

400.0

 

 

 

—

 

 

 

(18.9

)

 

 

(4.9

)

 

 

376.2

 

(c)

 

6.5

%

Secured Second A&R CDA

 

 

24.1

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

24.1

 

 

 

7.7

%

Unsecured Second A&R CDA

 

 

43.9

 

 

 

—

 

 

 

—

 

 

 

(0.1

)

 

 

43.8

 

 

 

7.7

%

Lease financing obligations

 

 

224.6

 

 

 

—

 

 

 

—

 

 

 

(0.2

)

 

 

224.4

 

(d)

 

17.4

%

Total debt

 

$

1,614.1

 

 

$

(16.5

)

 

$

(33.0

)

 

$

(16.2

)

 

$

1,548.4

 

 

 

 

Current maturities of Unsecured Second A&R CDA

 

 

(1.4

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1.4

)

 

 

 

Current maturities of lease financing obligations

 

 

(3.4

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(3.4

)

 

 

 

Long-term debt

 

$

1,609.3

 

 

$

(16.5

)

 

$

(33.0

)

 

$

(16.2

)

 

$

1,543.6

 

 

 

 

 

(a) The Par Value and the Book Value both reflect the accumulated cash funds that have been drawn, plus the accumulated paid-in-kind interest.

(b) Variable interest rate based on the Eurodollar rate, which is currently determined by the 1, 3 or 6-month USD LIBOR, with a floor of 1.0%, plus a fixed margin of 7.5%.

(c) Variable interest rate based on the Eurodollar rate, which is currently determined by the 1, 2, 3 or 6-month USD LIBOR, with a floor of 1.0%, plus a fixed margin of 3.5%.

(d) Interest rate for lease financing obligations is derived from the difference between total rent payment and calculated principal amortization over the life of lease agreements.

 

Principal Maturities of Long-Term Debt

 

The principal maturities of long-term debt for the next five years are as follows:

(in millions)

 

Principal Maturity Amount

 

2021 - remaining portion

 

$

2.0

 

2022

 

 

70.2

 

2023

 

 

4.5

 

2024

 

 

1,323.5

 

2025

 

 

-

 

Thereafter

 

 

213.9

 

Total

 

$

1,614.1

 

Fair Value Measurement

The book value and estimated fair values of our long-term debt, including current maturities, are summarized as follows:

 

 

 

September 30, 2021

 

 

December 31, 2020

 

(in millions)

 

Book Value

 

 

Fair Value

 

 

Book Value

 

 

Fair Value

 

Term Loan

 

$

588.7

 

 

$

612.5

 

 

$

582.7

 

 

$

611.0

 

UST Loans

 

 

667.4

 

 

 

627.3

 

 

 

349.2

 

 

 

322.0

 

Second A&R CDA

 

 

67.9

 

 

 

68.0

 

 

 

67.8

 

 

 

67.8

 

Lease financing obligations

 

 

224.4

 

 

 

224.1

 

 

 

225.7

 

 

 

225.8

 

Total debt

 

$

1,548.4

 

 

$

1,531.9

 

 

$

1,225.4

 

 

$

1,226.6

 

 

The fair values of the Term Loan and Second A&R CDA were estimated based on observable prices (level two inputs for fair value measurements). The fair value of the UST Loans is estimated using certain inputs that are unobservable (level three input for fair value measurement), which are based on the discounted amount of future cash flows using our current estimated incremental rate of borrowing for similar liabilities or assets. The fair value of the lease financing obligations are estimated using a publicly traded secured loan with similar characteristics (level three input for fair value measurement).