Quarterly report [Sections 13 or 15(d)]

Debt

v3.25.2
Debt
 6 Months Ended
Jun. 30, 2025
Debt Disclosure [Abstract]  
Debt Debt
Long-term debt consisted of the following (in thousands):
June 30, December 31,
2025 2024
Bank credit facility - term loan $ 300,000  $ 277,500 
Bank credit facility - revolving facility 83,000  155,000 
Principal amount of long-term debt 383,000  432,500 
Less: debt issuance costs
 (3,844) (2,327)
Total debt
 379,156  430,173 
Less: current portion
 (7,500) (30,000)
Long-term debt, less current portion $ 371,656  $ 400,173 

On May 2, 2025, the Company entered into a new credit agreement, which provides for a $300 million term loan facility and a $400 million revolving credit facility, both maturing on May 2, 2030. The revolving credit facility includes an aggregate amount of $30 million which is available through a sub facility in the form of letters of credit. The new credit agreement replaced the Company's existing term loan and revolving credit facility. The proceeds of the term loan were utilized to pay fees and expenses incurred in connection with the new agreement and to repay, in full, amounts outstanding under the previous credit agreement.

Borrowings under the new credit agreement accrue interest at either the term SOFR or ABR, plus in each case an applicable margin (based on the Company's Total Net Leverage Ratio). The ABR for any day is a fluctuating rate per annum equal to the highest of (i) the Federal Funds Effective Rate plus .50%; (ii) the Prime Rate and (iii) the daily SOFR rate plus 1%. The applicable margin for term SOFR loans ranges from 1.25% to 2.25% and for ABR loans from 0.25% to 1.25%. The Company also pays a commitment fee with respect to undrawn amounts under the revolving loan facility ranging from .20% to .30% (based on the Company's Total Net Leverage Ratio) and fees on letters of credit that are issued.

The Company incurred $2.6 million of fees in connection with the new credit agreement, of which $2.3 million were deferred as debt issuance costs and will be amortized to interest expense over the remaining term of the agreement.
As of June 30, 2025, the interest rate on the Company's outstanding term loan borrowings and weighted average interest rate on its aggregate outstanding revolving facility were 6.08% and 6.07%, respectively. As of June 30, 2025 and December 31, 2024, the Company had letters of credit outstanding of $0.6 million and $0.8 million, respectively.

Future required term loan and revolving facility payments as of June 30, 2025 are as follows (in thousands):
Year Ending Term Loan Revolving Facility Total
Remainder of 2025 $ 3,750  $ —  $ 3,750 
2026 7,500  —  7,500 
2027 11,250  —  11,250 
2028 20,625  —  20,625 
2029 22,500  —  22,500 
2030 234,375  83,000  317,375 
     Total $ 300,000  $ 83,000  $ 383,000 
Restrictive covenants of the new credit agreement include a maximum Total Net Leverage Ratio and a minimum Interest Coverage Ratio. The Company was in compliance with the required ratios and other terms and conditions under its credit agreement as of June 30, 2025.