Debt

3 Months Ended

Mar. 31, 2021

Debt Disclosure [Abstract]

Debt

DEBT

The Company’s borrowings consist of the following:

	As of
	March 31, 2021		December 31, 2020
(in thousands)
5.75% unsecured notes due June 1, 2026 (1)	$	396,289	$	396,112
Revolving credit facility	75,621		74,686
Commercial note	24,500		25,250
Pinnacle Bank term loan	10,411		10,692
Pinnacle Bank line of credit	73		2,295
Other indebtedness	3,435		3,520
Total Debt	$	510,329	$	512,555
Less: current portion	(4,238)		(6,452)
Total Long-Term Debt	$	506,091	$	506,103

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(1)     The carrying value is net of $3.7 million and $3.9 million of unamortized debt issuance costs as of March 31, 2021 and December 31, 2020, respectively.

The outstanding balance on the Company’s revolving credit facility was £55 million as of March 31, 2021 with interest payable at the 3 month GBP LIBOR plus 1.50%. The Company’s other indebtedness at March 31, 2021 and December 31, 2020 is at interest rates of 0% to 16% and matures between 2023 and 2030.

The Company is in compliance with all financial covenants as of March 31, 2021.

During the three months ended March 31, 2021 and 2020, the Company had average borrowings outstanding of approximately $512.1 million and $511.4 million, respectively, at average annual interest rates of approximately 5.0% and 5.1%, respectively. During the three months ended March 31, 2021 and 2020, the Company incurred net interest expense of $7.6 million and $6.5 million, respectively.

During the three months ended March 31, 2021, the Company recorded interest expense of $1.1 million to adjust the fair value of the mandatorily redeemable noncontrolling interest. The fair value of the mandatorily redeemable noncontrolling interest was based on the fair value of the underlying subsidiaries owned by GHC One, after taking into account any debt and other noncontrolling interests of its subsidiary investments. The fair value of the owned subsidiaries is determined by reference to either a discounted cash flow or EBITDA multiple, which approximates fair value (Level 3 fair value assessment).

At March 31, 2021 and December 31, 2020, the fair value of the Company’s 5.75% unsecured notes, based on quoted market prices (Level 2 fair value assessment), totaled $418.4 million and $421.7 million, respectively, compared with the carrying amount of $396.3 million and $396.1 million, respectively. The carrying value of the Company’s other unsecured debt at March 31, 2021 and December 31, 2020 approximates fair value.