Quarterly report [Sections 13 or 15(d)]

Debt

v3.26.1
Debt
 3 Months Ended
Mar. 31, 2026
Debt Disclosure [Abstract]  
Debt Debt
Long-term debt consisted of the following (in thousands):
March 31, December 31,
2026 2025
Bank credit facility - term loan $ 294,375  $ 296,250 
Amortizing notes
 71,967  — 
Principal amount of long-term debt 366,342  296,250 
Less: debt issuance costs
 (5,367) (3,446)
Total debt, net of debt issuance costs
 360,975  292,804 
Less: current portion
 (29,924) (7,500)
Total long-term debt, net of current portion
 $ 331,051  $ 285,304 

As of March 31, 2026, the interest rate on the Company's outstanding term loan was 5.17%. The Company did not have any outstanding borrowings under its revolving credit facility as of March 31, 2026 and December 31, 2025. The Company had letters of credit outstanding of $0.7 million and $0.6 million as of March 31, 2026 and December 31, 2025, respectively.

In February 2026, the Company entered into an underwriting agreement relating to the issuance of tangible equity units which are comprised, in part, of senior unsecured amortizing notes. See Note (13) "Common Stock and Tangible Equity Units Public Offerings" for further discussion of the amortizing notes. The amortizing notes are payable in quarterly installments, each of which will constitute a partial repayment of principal and a payment of interest at a rate of 5.93% per annum, with a final installment payment date of February 1, 2029, unless settled earlier. Future required principal payments on the amortizing notes are as follows: $16.6 million for the remainder of 2026, $23.7 million in 2027, $25.1 million in 2028, and $6.5 million in 2029.
The Company deferred $2.4 million of debt issuance costs related to the amortizing notes, which will be amortized to interest expense over the note term using the effective interest rate method.

Subsequent Event

On May 5, 2026, the Company entered into a first amendment to its existing senior secured credit agreement, dated as of May 2, 2025 (as amended and restated, supplemented or otherwise modified, the "Credit Agreement"), which provides for, among other things, a new senior secured term loan B facility in an aggregate principal amount of $900.0 million (the "New Term Facility") and an upsize to the Company's existing senior secured revolving credit facility from $400.0 million to $500.0 million ("the Revolving Facility"), maturing on May 5, 2033 and May 2, 2030, respectively. Borrowings under the amended Credit Agreement will accrue interest at either the Term SOFR or ABR (as defined in the Credit Agreement), plus in each case an applicable margin, based on the Company's Net Leverage Ratio (as defined in the Credit Agreement). The amendment replaces the Company's existing term loan.

On May 5, 2026, the Company borrowed $900.0 million under the New Term Facility. Borrowings under the New Term Facility were utilized (i) to pay fees and expenses incurred in connection with the amended Credit Agreement, (ii) to repay, in full, amounts outstanding under the prior term loan, and (iii) to fund a portion of the purchase price for the PAG Acquisition (as defined later).

Future required payments on the New Term Facility, to be paid in equal quarterly installments of $9.0 million per year beginning in September 2026, are as follows: $4.5 million for the remainder of 2026, $9.0 million in each year from 2027 through 2032, and $841.5 million in 2033.
Restrictive covenants of the 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 March 31, 2026.