Term Loans

9 Months Ended

Sep. 30, 2025

Term Loans

Debt

Debt

Term Loans

In January 2024, in connection with the Merger, we entered into an amended and restated term loan agreement that replaced Spirit's then-existing term loans with various lenders. Pursuant to the agreement, we borrowed an aggregate of $800.0 million, $300.0 million of which was repaid upon its maturity in August 2025 and $500.0 million of which matures in August 2027. The remaining $500.0 million term loan associated with the Merger is subject to interest rate swaps that fixed the effective interest rate at 3.3%. We also entered into a separate amended and restated term loan agreement pursuant to which we borrowed $500.0 million in aggregate total borrowings which was repaid upon its maturity in June 2025.

We also have a 2023 term loan agreement which allows us to incur up to an aggregate of $1.5 billion in multi-currency borrowings. In January 2024, we entered into interest rate swaps which fix our per annum interest rate at 4.8% until maturity in January 2026. As of September 30, 2025, we had $1.1 billion in multi-currency borrowings, including $90.0 million, £705.0 million, and €85.0 million in outstanding borrowings. Our A3/A- credit ratings provide for a borrowing rate of 80 basis points over the applicable benchmark rate, which includes adjusted SOFR for USD-denominated loans, adjusted SONIA for GBP-denominated loans, and EURIBOR for EUR-denominated loans.

Deferred financing costs were $0.7 million as of September 30, 2025 and are included net of the term loans' principal balance, as compared to $2.2 million as of December 31, 2024 on our consolidated balance sheets. These costs are being amortized over the remaining term of the term loans. As of September 30, 2025, we were in compliance with the covenants contained in the term loans.