Long-term debt

3 Months Ended

Mar. 31, 2022

Long-term debt was comprised of the following:


						As of March 31, 2022
	March 31, 2022		December 31, 2021		Maturity date	Interest rate		Estimated fair value(1)
Senior Secured Credit Facilities:
Term Loan A(2)	$	1,575,000	$	1,596,875	8/12/2024	LIBOR+1.50%		$	1,578,938
Term Loan B-1	2,681,405		2,688,263		8/12/2026	LIBOR+1.75%		$	2,671,349
Revolving line of credit(2)	—		—		8/12/2024	LIBOR+1.50%
Senior Notes:
4.625% Senior Notes	2,750,000		2,750,000		6/1/2030	4.625	%	$	2,571,250
3.75% Senior Notes	1,500,000		1,500,000		2/15/2031	3.75	%	$	1,320,000
Acquisition obligations and other notes payable(3)	128,476		130,599		2022-2036	4.87	%	$	128,476
Financing lease obligations(4)	291,949		299,128		2023-2038	4.55	%
Total debt principal outstanding	8,926,830		8,964,865
Discount, premium and deferred financing costs(5)	(53,615)		(56,685)
	8,873,215		8,908,180
Less current portion	(185,728)		(179,030)
	$	8,687,487	$	8,729,150

(1)For the Company's senior secured credit facilities and senior notes, fair value estimates are based upon bid and ask quotes, typically a level 2 input. For acquisition obligations and other notes payable, the carrying values presented approximate their estimated fair values, based on estimates of their present values using level 2 interest rate inputs.

(2)The Company's interest rate on its Term Loan A and revolving line of credit is subject to adjustment depending upon the Company's leverage ratio under the credit agreement governing its senior secured credit facilities. Based on the Company's leverage ratio as of March 31, 2022, the Company’s interest rate effective in the second quarter of 2022 will be LIBOR plus 1.75% for its Term Loan A and revolving line of credit.

(3)The interest rate presented for acquisition obligations and other notes payable is their weighted average interest rate based on the current fixed and variable interest rate components in effect as of March 31, 2022.

(4)Financing lease obligations are measured at their approximate present values at inception. The interest rate presented is the weighted average discount rate embedded in financing leases outstanding.

(5)As of March 31, 2022, the carrying amount of the Company's senior secured credit facilities have been reduced by a discount of $4,228 and deferred financing costs of $25,088, and the carrying amount of the Company's senior notes have been reduced by deferred financing costs of $39,736 and increased by a debt premium of $15,437. As of December 31, 2021, the carrying amount of the Company's senior secured credit facilities were reduced by a discount of $4,473 and deferred financing costs of $27,207, and the carrying amount of the Company's senior notes were reduced by deferred financing costs of $40,914 and increased by a debt premium of $15,909.

During the first three months of 2022, the Company made regularly scheduled mandatory principal payments under its senior secured credit facilities totaling $21,875 on Term Loan A and $6,858 on Term Loan B-1.

As of March 31, 2022, the Company's 2019 interest rate cap agreements have the economic effect of capping the Company's maximum exposure to LIBOR variable interest rate changes on equivalent amounts of the Company's floating rate debt, including all of Term Loan B-1 and a portion of Term Loan A. The remaining $756,405 outstanding principal balance of Term Loan A is subject to LIBOR-based interest rate volatility. These cap agreements are designated as cash flow hedges and, as a result, changes in the fair values of the cap agreements are reported in other comprehensive income. The original premiums paid for the caps are amortized to debt expense on a straight-line basis over the term of each cap agreement starting from its effective date. These cap agreements do not contain credit risk-contingent features.

The following table summarizes the Company’s interest rate cap agreements outstanding as of March 31, 2022 and December 31, 2021, which are classified in "Other long-term assets" on its consolidated balance sheet:


						Three months ended March 31, 2022				Fair value
	Notional amount		LIBOR maximum rate	Effective date	Expiration date	Debt expense		Recorded OCI gain		March 31, 2022		December 31, 2021
2019 cap agreements	$	3,500,000	2.00%	6/30/2020	6/30/2024	$	1,377	$	54,806	$	67,009	$	12,203

See Note 9 for further details on amounts reclassified from accumulated other comprehensive loss and recorded as debt expense related to the Company’s interest rate cap agreements for the three months ended March 31, 2022 and 2021.

The Company’s weighted average effective interest rate on its senior secured credit facilities at the end of the first quarter of 2022 was 2.54%, based on the current margins in effect for its senior secured credit facilities as of March 31, 2022, as described above.

The Company’s overall weighted average effective interest rate for the three months ended March 31, 2022 was 3.35%, and as of March 31, 2022 was 3.52%.

As of March 31, 2022, the Company’s interest rates were fixed on approximately 52% of its total debt.

As of March 31, 2022, the Company had an undrawn $1,000,000 revolving line of credit under its senior secured credit facilities. Credit available under this facility is reduced by the amount of any letters of credit outstanding under this facility, of which there were none as of March 31, 2022. The Company also had approximately $108,095 in letters of credit outstanding under a separate bilateral secured letter of credit facility as of March 31, 2022.