Debt and Financing

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

Debt and Financing

3. Debt and Financing

Our outstanding debt as of March 31, 2023, consisted of the following:

(in millions)	Par Value			Discount			Commitment Fee			Debt Issuance Costs			Book Value				Effective Interest Rate
UST Loan Tranche A(a)	$	329.4		$	—		$	(7.1	)	$	(1.8	)		320.5		(b)		6.3	%
UST Loan Tranche B		400.0			—			(9.4	)		(2.5	)		388.1		(b)		6.5	%
Term Loan (a)		567.4			(7.0	)		—			(3.3	)		557.1		(c)		9.5	%
ABL Facility		—			—			—			—			—			N/A
Lease financing obligations		212.2			—			—			(0.1	)		212.1		(d)		17.6	%
Total debt	$	1,509.0		$	(7.0	)	$	(16.5	)	$	(7.7	)	$	1,477.8
Current maturities of lease financing obligations		(7.8	)		—			—			—			(7.8	)
Long-term debt	$	1,501.2		$	(7.0	)	$	(16.5	)	$	(7.7	)	$	1,470.0

(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, 2, 3 or 6-month USD LIBOR, with a floor of 1.0%, plus a fixed margin of 3.5%.

(c) 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%.

(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. The remaining term of these obligations ranges between 2024 and 2032 with right of renewal options available.

On January 3, 2023, the outstanding balance of the A&R CDA was paid in full, and in compliance with the terms of the agreement reducing our cash and cash equivalents by $66.3 million.

The Company has $567.4 million in debt due June 30, 2024 and $729.4 million in debt due September 30, 2024. At March 31, 2023, the Company had cash and cash equivalents and Managed Accessibility of $167.5 million. On or before the maturation of debt in 2024, the Company will require substantial additional liquidity to satisfy these debt obligations. The Company is currently evaluating strategies to obtain the needed additional liquidity to satisfy these obligations. These strategies may include, but are not limited to, issuing debt or entering into other financing arrangements. There can be no assurance that the Company will be able to obtain additional liquidity when needed or under acceptable terms.

Maturities

The principal maturities over the next five years and thereafter of total debt as of March 31, 2023 are as follows:

(in millions)	Principal Maturity Amount
2023 - remaining portion	$	7.8
2024		1,304.3
2025		9.6
2026		11.0
2027		14.0
Thereafter		162.3
Total	$	1,509.0

Fair Value Measurement

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

	March 31, 2023				December 31, 2022
(in millions)	Book Value		Fair Value		Book Value		Fair Value
UST Loans	$	708.6	$	705.8	$	701.4	$	703.6
Term Loan		557.1		516.3		556.8		523.6
Second A&R CDA		—		—		66.0		66.3
Lease financing obligations		212.1		212.5		213.8		213.7
Total debt	$	1,477.8	$	1,434.6	$	1,538.0	$	1,507.2

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 is estimated using a publicly traded secured loan with similar characteristics (level three input for fair value measurement).