Debt

3 Months Ended

Mar. 31, 2024

Debt Disclosure [Abstract]

Debt

DEBT

The Company’s borrowings consist of the following:

				As of
(in thousands)	Maturities	Stated Interest Rate	Effective Interest Rate	March 31, 2024		December 31, 2023
Unsecured notes (1)	2026	5.75%	5.75%	$	398,445	$	398,266
Revolving credit facility	2027	6.56% - 8.88%	6.74%	108,126		97,879
Term loan (2)	2027	7.15% - 7.21%	7.30%	145,559		147,476
Real estate term loan (3)	2028	7.08% - 7.10%	7.19%	73,605		74,541
Capital term loan (4)	2028	7.33% - 7.35%	7.43%	61,516		63,097
Other indebtedness	2024 - 2030	0.00% - 16.00%		28,301		30,574
Total Debt				815,552		811,833
Less: current portion				(76,844)		(66,751)
Total Long-Term Debt				$	738,708	$	745,082

____________

(1)     The carrying value is net of $1.6 million and $1.7 million of unamortized debt issuance costs as of March 31, 2024 and December 31, 2023, respectively.

(2)     The carrying value is net of $0.7 million and $0.6 million of unamortized debt issuance costs as of March 31, 2024 and December 31, 2023, respectively.

(3)     The carrying value is net of $0.1 million of unamortized debt issuance costs as of March 31, 2024 and December 31, 2023.

(4)     The carrying value is net of $0.8 million of unamortized debt issuance costs as of March 31, 2024 and December 31, 2023.

At March 31, 2024 and December 31, 2023, the fair value of the Company’s 5.75% unsecured notes, based on quoted market prices (Level 2 fair value assessment), totaled $398.1 million and $400.4 million, respectively.

The outstanding balance on the Company’s $300 million unsecured revolving credit facility was $108.1 million as of March 31, 2024, consisting of U.S. dollar borrowings of $45 million with interest payable at SOFR plus 1.375% or prime rate plus 0.375%, and British Pound (GBP) borrowings of £50 million with interest payable at Daily Sterling Overnight Index Average (SONIA) plus 1.375%.

The fair value of the Company’s other debt, which is based on Level 2 inputs, approximates its carrying value as of March 31, 2024 and December 31, 2023. The Company is in compliance with all financial covenants of the revolving credit facility and term loans as of March 31, 2024.

During the three months ended March 31, 2024 and 2023, the Company had average borrowings outstanding of approximately $810.7 million and $735.0 million, respectively, at average annual interest rates of approximately 6.4% and 5.8%, respectively. During the three months ended March 31, 2024 and 2023, the Company incurred net interest expense of $17.2 million and $13.1 million, respectively.

During the three months ended March 31, 2024 and 2023, the Company recorded interest expense of $1.9 million and $1.5 million, respectively, 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 and GHC Two, 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).