Debt

12 Months Ended

Dec. 31, 2022

Debt Disclosure [Abstract]

Debt

Debt

The Company’s short-term and long-term debt at December 31, 2022 and 2021 consisted of the following:

	December 31,
(in thousands)	2022		2021
Short-term debt – non-recourse	$	81,475	$	65,485
Short-term debt – recourse	191,100		436,307
Total short-term debt	272,575		501,792
Current maturities of long-term debt – non-recourse	63,815		7,601
Current maturities of long-term debt – recourse	46,340		24,655
Total current maturities of long-term debt	110,155		32,256
Long-term debt, less: current maturities – non-recourse	414		64,972
Long-term debt, less: current maturities – recourse	492,104		535,515
Total long-term debt, less: current maturities	$	492,518	$	600,487

On March 2, 2022, the Company completed an incremental term loan amendment to its credit agreement dated January 11, 2019. The amendment provided for a short-term note of $250.0 million in which the entire stated principal was due on May 31, 2022 (subsequently extended to August 31, 2022). On March 9, 2022, the Company completed an additional term loan amendment that expanded the short-term note capacity from $250.0 million to $450.0 million. On May 27, 2022, the Company completed an additional amendment to convert the $350.0 million then outstanding balance from the $450.0 million incremental term loan amendment to a revolving credit agreement with a capacity of up to $450.0 million. The entire amount outstanding was due on August 31, 2022, and was fully repaid during the third quarter of 2022.

On March 28, 2022, the Company continued to amend its credit agreement dated January 11, 2019. The amendment increased borrowing capacity on the revolver from $900.0 million to $1,550.0 million and extended the maturity dates of the $140.6 million and $209.4 million long-term notes originally due in 2026 to March 26, 2027, and March 28, 2029, respectively. The amendment also transitions the reference rate in the credit agreement from LIBOR to "SOFR" (Standard Overnight Financing Rate). The revolver and term notes will bear interest at variable rates, which are based on SOFR plus an applicable spread.

During the first quarter of 2022, the Company repaid the remaining $200.0 million balance that was outstanding as of December 31, 2021, on a short-term note that was classified as recourse debt to the Company.

The capacity of the Company's short-term lines of credit at December 31, 2022 was $1,990.8 million of which the Company had a total of $1,659.6 million available for borrowing. The Company's borrowing capacity is reduced by a combination of outstanding borrowings and letters of credit. The weighted-average interest rate on short-term borrowings outstanding at December 31, 2022 and 2021, were 5.67% and 1.49%, respectively.

As part of the Company's ongoing covenant monitoring process, the Company determined that as of December 31, 2022, ELEMENT is virtually certain to be out of compliance with an owner's equity ratio covenant within the next 12 months. As such, the $63.3 million of non-recourse debt associated with ELEMENT has been classified in Current maturities of long-term debt as of December 31, 2022. Additionally, ELEMENT did not make a required debt payment in February 2023 and subsequently received a default notice from the lender on February 17, 2023. This event of default could result in the lender accelerating the maturity of ELEMENT’s indebtedness or preventing access to additional funds under the line of credit agreement, or requiring prepayment of outstanding indebtedness under the loan agreement or the line of credit agreement. Subsequent to year end, the Company began to consider various strategies related to the investment.

The Company was in compliance with all financial covenants at and during the years ended December 31, 2022 and 2021, other than with respect to the ELEMENT non-recourse debt as discussed above.

Total interest paid was $56.7 million, $38.2 million and $33.9 million for the years ended December 31, 2022, 2021 and 2020, respectively.

As of December 31, 2022 and 2021, the estimated fair value of long-term debt, including the current portion, was $595.7 million and $650.7 million, respectively. The Company estimates the fair value of its long-term debt based upon the Company’s credit standing and current interest rates offered by the Company on similar bonds and rates currently available to the Company for long-term borrowings with similar terms and remaining maturities.

Long-Term Debt

Recourse Long-Term Debt

	December 31,
(in thousands, except percentages)	2022		2021
Note payable, variable rate (6.08% at December 31, 2022), payable in increasing amounts plus interest, due 2029	$	201,524	$	212,500
Note payable, variable rate (5.96% at December 31, 2022), payable in increasing amounts plus interest, due 2027	135,352		142,500
Note payable, 4.50%, payable at maturity, due 2034 (a)	95,500		99,090
Note payable, 4.85%, payable at maturity, due 2026	25,000		25,000
Note payable, 4.55%, payable at maturity, due 2023	24,000		24,000
Industrial revenue bond, variable rate (4.81% at December 31, 2022), payable at maturity, due 2036	21,000		21,000
Note payable, 4.50%, payable at maturity, due 2030	16,000		16,000
Note payable, 5.00%, payable at maturity, due 2040	14,000		14,000
Finance lease obligations, due serially to 2030 (a)	9,071		10,135
	541,447		564,225
Less: current maturities	46,340		24,655
Less: unamortized prepaid debt issuance costs	3,003		4,055
	$	492,104	$	535,515

(a) Debt is collateralized by first mortgages on certain facilities and related equipment or other assets with a book value of $56.6 million.

The aggregate annual maturities of recourse, long-term debt are as follows: 2023 -- $46.3 million; 2024 -- $22.6 million; 2025 -- $22.8 million; 2026 -- $48.0 million; 2027 -- $123.4 million; and $278.3 million thereafter.

Non-Recourse Long-Term Debt

The Company's non-recourse long-term debt consists of the following:

	December 31,
(in thousands)	2022		2021
Note payable, variable rate (7.59% at December 31, 2022), payable at maturity, due 2023 (a)	$	63,335	$	70,000
Finance lease obligations, due serially to 2024	894		2,745
	64,229		72,745
Less: current maturities	63,815		7,601
Less: unamortized prepaid debt issuance costs	—		172
	$	414	$	64,972

(a) Debt is collateralized by a first mortgages on the ELEMENT facility and related equipment or other assets with a book value of $128.9 million.

The aggregate annual maturities of non-recourse long-term debt are $63.8 million and $0.4 million for the years ended December 31, 2023 and 2024, respectively.