Long-Term Debt

12 Months Ended

Dec. 31, 2021

6.	Long-Term Debt

On April 18, 2018, the Company entered into a Credit Agreement (the “Credit Agreement”) with several financial institutions as lenders and Bank of America, N.A., as administrative agent. The Credit Agreement provides for a $400 million term loan facility and a $350 million revolving credit facility, each with a term of five years. Both facilities bear interest at LIBOR, plus a margin based on the consolidated leverage ratio. The term loan facility amortizes in quarterly installments in amounts resulting in an annual amortization of 5.0% during the first and second years, 7.5% during the third and fourth years and 10.0% during the fifth year after the closing date of the Credit Agreement, with the remainder payable at final maturity. The Credit Agreement requires the Company to maintain a consolidated leverage ratio not exceeding 2.25 to 1.00 and a consolidated interest coverage ratio of no less than 3.00 to 1.00. As of December 31, 2021, the Company was in compliance with all covenants under the Credit Agreement.

The following table summarizes the Company’s debt facilities as of December 31, 2021 and 2020:

Facility or Arrangement	Original Principal Amount	Balance as of December 31, 2021 ⁽¹⁾⁽²⁾	Balance as of December 31, 2020 ⁽¹⁾⁽²⁾	Interest Rate	Repayment Terms
Credit Agreement term loan facility	$400.0 million	$307.5 million	$337.5 million	Variable 30 day: 1.85%	35% of the principal amount is payable in increasing quarterly installments over a five-year period that began on June 30, 2018, with the remainder payable at the end of the five-year term.

Credit Agreement revolving credit facility		$70.0 million	—	Variable 30 day: 1.85%	Revolving line of credit expires April 18, 2023.

(1)	As of December 31, 2021 and 2020, the current portion of the Company’s debt (i.e. becoming due in the next 12 months) included $37.5 million and $30.0 million, respectively, of the balance of its term loan under the Credit Agreement.

(2)	The carrying value of the debt reflects the amounts stated in the above table, less debt issuance costs of $1.2 million and $2.1 million as of December 31, 2021 and 2020, respectively, related to the Credit Agreement, which are not reflected in this table.

Maturities of all long-term debt at December 31, 2021, are as follows (U.S. dollars in thousands):

Year Ending December 31,
2022	$	37,500
2023		270,000
2024		—
2025		—
2026		—
Thereafter		—
Total ⁽¹⁾	$	307,500

(1)	The carrying value of the debt reflects the amounts stated in the above table less debt issuance costs of $1.2 million, which is not reflected in this table.