Long-term debt

3 Months Ended

Mar. 31, 2023

Long-term debt was comprised of the following:


						As of March 31, 2023
	March 31, 2023		December 31, 2022		Maturity date	Interest rate		Estimated fair value(1)
Senior Secured Credit Facilities(2):
Term Loan A	$	1,444,427	$	1,498,438	8/12/2024	LIBOR+1.75%		$	1,433,594
Term Loan B-1	2,624,359		2,660,831		8/12/2026	LIBOR+1.75%		$	2,584,994
Revolving line of credit	—		165,000		8/12/2024	LIBOR+1.75%		$	—
Senior Notes:
4.625% Senior Notes	2,750,000		2,750,000		6/1/2030	4.625	%	$	2,344,375
3.75% Senior Notes	1,500,000		1,500,000		2/15/2031	3.75	%	$	1,183,125
Acquisition obligations and other notes payable(3)	117,856		120,562		2023-2036	6.82	%	$	117,856
Financing lease obligations(4)	264,612		273,688		2024-2039	4.53	%
Total debt principal outstanding	8,701,254		8,968,519
Discount, premium and deferred financing costs(5)	(41,529)		(44,498)
	8,659,725		8,924,021
Less current portion	(242,193)		(231,404)
	$	8,417,532	$	8,692,617

(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)Term Loan A, Term Loan B-1 and the revolving line of credit have each been amended subsequent to March 31, 2023. See Note 14 for more information on these amendments.

(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, 2023.

(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, 2023, the carrying amount of the Company's senior secured credit facilities have been reduced by a discount of $3,254 and deferred financing costs of $16,797, and the carrying amount of the Company's senior notes have been reduced by deferred financing costs of $35,024 and increased by a debt premium of $13,546. As of December 31, 2022, the carrying amount of the Company's senior secured credit facilities were reduced by a discount of $3,497 and deferred financing costs of $18,816, and the carrying amount of the Company's senior notes were reduced by deferred financing costs of $36,203 and increased by a debt premium of $14,018.

During the first three months of 2023, the Company made regularly scheduled and other principal payments under its senior secured credit facilities totaling $54,011 on Term Loan A and $36,472 on Term Loan B-1.

As of March 31, 2023, the Company's 2019 interest rate cap agreements described below had 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 $568,786 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 their fair values 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, 2023 and December 31, 2022, which are classified in other long-term assets on its consolidated balance sheet:


						Three months ended March 31, 2023				Fair value
	Notional amount		LIBOR maximum rate	Effective date	Expiration date	Debt expense (offset)		Recorded OCI loss		March 31, 2023		December 31, 2022
2019 cap agreements	$	3,500,000	2.00%	6/30/2020	6/30/2024	$	(20,975)	$	4,716	$	112,687	$	139,755

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, 2023 and 2022.

As a result of the LIBOR cap from the Company's 2019 interest rate cap agreements, the Company’s weighted average effective interest rate on its senior secured credit facilities at the end of the first quarter of 2023 was 4.60%, based on the current margins in effect for its senior secured credit facilities as of March 31, 2023, as detailed in the table above.

The Company’s weighted average effective interest rate on all debt, including the effect of interest rate caps and amortization of debt discount, was 4.55% for the three months ended March 31, 2023 and 4.53% as of March 31, 2023.

As of March 31, 2023, the Company’s interest rates were fixed and economically fixed on approximately 53% and 93% of its total debt, respectively.

As of March 31, 2023, the Company had an undrawn $1,000,000 revolving line of credit under its senior secured credit facilities. Credit available under this revolving line of credit is reduced by the amount of any letters of credit outstanding under the facility, of which there were none as of March 31, 2023. The Company also had letters of credit of approximately $151,358 outstanding under a separate bilateral secured letter of credit facility as of March 31, 2023.

Subsequent to March 31, 2023, the Company amended its senior secured credit facilities and entered into several forward interest rate cap agreements that become effective June 28, 2024 and June 30, 2024. For additional information see Note 14.