Long-Term Debt and Other Borrowings

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

Debt Disclosure

LONG-TERM DEBT AND OTHER BORROWINGS

Consolidated long-term debt as of March 31, 2023 and December 31, 2022 consists of the following:

	Scheduled Maturity	March 31, 2023		December 31, 2022
		(in thousands)
Term Credit Agreement(1)	September 10, 2025	$	155,282	$	154,570
Asset-Based Credit Agreement(2)	May 31, 2025	5,229		1,885
Argentina Credit Agreement	October 19, 2023	1,700		—
Swedish Credit Facility	December 31, 2023	461		3
Total debt		162,672		156,458
Less current portion		(2,162)		(3)
Total long-term debt		$	160,510	$	156,455

(1) Net of unamortized discount of $3.1 million and $3.4 million as of March 31, 2023 and December 31, 2022, respectively, and net of unamortized deferred financing costs of $4.7 million and $5.1 million as of March 31, 2023 and December 31, 2022, respectively.

(2) Net of unamortized deferred financing costs of $1.0 million and $1.1 million as of March 31, 2023 and December 31, 2022, respectively.

Term Credit Agreement

    As of March 31, 2023, we had $155.3 million outstanding, net of unamortized discounts and unamortized deferred financing costs under our term credit agreement (“Term Credit Agreement”). The Term Credit Agreement requires us to offer to prepay a percentage of Excess Cash Flow (as defined in the Term Credit Agreement) within five business days of filing our Annual Report. As of March 31, 2023, the interest rate per annum on borrowings under the Term Credit Agreement is 10.88%. For additional information on our Term Credit agreement, see our 2022 Annual Report.

ABL Credit Agreement

As of March 31, 2023, our asset-based credit agreement (“ABL Credit Agreement”) provides for a senior secured revolving credit facility of up to $80.0 million, with a $20.0 million accordion. The credit facility is subject to a borrowing base determined monthly by reference to the value of inventory and accounts receivable, and includes a sublimit of $20.0 million for letters of credit, a swingline loan sublimit of $11.5 million, and a $15.0 million sub-facility subject to a borrowing base consisting of certain trade receivables and inventory in the United Kingdom.

As of March 31, 2023, we had $6.2 million outstanding and $8.3 million in letters of credit and guarantees under our ABL Credit Agreement, respectively. Subject to compliance with the covenants, borrowing base, and other provisions of the ABL Credit Agreement that may limit borrowings, we had availability of $65.4 million under this agreement.

Argentina Credit Agreement

In January 2023, the Company entered into a revolving credit facility for certain working capital and capital expenditure needs for its subsidiary in Argentina (“Argentina Credit Facility”). As of March 31, 2023, we had $1.7 million outstanding and availability of approximately $0.3 million under the Argentina Credit Agreement. Borrowings bear interest at a rate of 2.50% per annum. The Argentina Credit Facility expires on October 19, 2023 and is backed by a letter of credit under our ABL Credit Agreement.

Swedish Credit Facility

In January 2022, the Company entered into a revolving credit facility for seasonal working capital needs of subsidiaries in Sweden (“Swedish Credit Facility”). As of March 31, 2023, we had $0.5 million outstanding and availability of approximately $4.4 million under the Swedish Credit Facility. During each year, all outstanding loans under the Swedish Credit Facility must be repaid for at least 30 consecutive days. Borrowings bear interest at a rate of 2.95% per annum. The Swedish Credit Facility expires on December 31, 2023 and the Company intends to renew it annually.

Finland Credit Agreement

In January 2022, the Company also entered into an agreement guaranteed by certain accounts receivable and inventory in Finland (“Finland Credit Agreement”). As of March 31, 2023, there were $1.5 million of letters of credit outstanding against the Finland Credit Agreement. The Finland Credit Agreement expires on January 31, 2024 and the Company intends to renew it annually.

Covenants

Our credit agreements contain certain affirmative and negative covenants, including covenants that restrict the ability to pay dividends or other restricted payments. As of March 31, 2023, we are in compliance with all covenants under the credit agreements.