Quarterly report pursuant to Section 13 or 15(d)

Debt

v3.23.3
Debt
 9 Months Ended
Sep. 30, 2023
Debt Disclosure [Abstract]  
Debt Debt
Long-term debt consisted of the following (in thousands):
September 30, December 31,
2023 2022
Bank credit facility - term loan $ 182,500  $ 100,000 
Bank credit facility - revolving facility 281,000  188,610 
Principal amount of long-term debt 463,500  288,610 
Less: debt issuance costs
 (2,730) (2,310)
Total long-term debt 460,770  286,300 
Less: current portion
 (19,000) (10,000)
Long-term debt, less current portion $ 441,770  $ 276,300 

Borrowings under our term loan and revolving facility mature in October 2025. As of September 30, 2023, the interest rate on our outstanding term loan borrowings and weighted average interest rate on our aggregate outstanding revolving facility was 8.68% and 9.46%, respectively. We had letters of credit outstanding of $0.7 million and $1.0 million as of September 30, 2023 and December 31, 2022, respectively.

In July 2023, we entered into a fifth amendment to our credit agreement which, among other things, provided for the following: (i) the extension of a new term loan in the aggregate principal amount of $90.0 million, which will mature on the same date as the existing term loan; (ii) a reduction in our capacity to incur incremental revolving or term loan credit facilities from $100.0 million to $25.0 million; (iii) quarterly amortization payments for the new term loan in the amount of $2.25 million; (iv) an increase in the maximum Total Funded Debt to EBITDA Ratio from 4.50x to 5.00x, with such ratios decreasing thereafter; (v) the addition of a tier to the top of the pricing grid if the Total Funded Debt to EBITDA ratio exceeds 4.50x; and (vi) expressly permitting the Desser Aerospace acquisition and the subsequent and simultaneous sale of the propriety solutions businesses to Loar (the "Loar Sale"). The net proceeds received under the new term loan were used to fund a portion of the cash consideration for the Desser Aerospace acquisition.

Future required term loan and revolving facility payments as of September 30, 2023 are as follows (in thousands):

Year Ending Term Loan Revolving Facility Total
Remainder of 2023 $ 4,750  $ —  $ 4,750 
2024 19,000  —  19,000 
2025 158,750  281,000  439,750 
     Total $ 182,500  $ 281,000  $ 463,500 
We were in compliance with required ratios and other terms and conditions under our credit agreement as of September 30, 2023.