Long-Term Debt

12 Months Ended

Dec. 31, 2022

Debt Disclosure [Abstract]

Long-Term Debt

Note 12.    Long-Term Debt

As at December 31, 2022, and December 31, 2021, the Company has not drawn down on its revolving credit facility.

The Company continues to have available a $250.0 million revolving credit facility until September 25, 2024. The facility contains an accordion feature whereby the Company may elect to increase the total available borrowings by an aggregate amount of up to $125.0 million.

The deferred finance costs of $0.6 million (December 31, 2021 – $1.0 million) related to the arrangement of the credit facility, are included within other current and non-current assets at the balance sheet dates.

(in millions)	2022			2021
Gross cost at January 1	$	1.8		$	1.8
Capitalized in the year		—			—
		1.8			1.8
Accumulated amortization at January 1	$	(0.8	)	$	(0.5	)
Amortization in the year		(0.4	)		(0.3	)
	$	(1.2	)	$	(0.8	)
Net book value at December 31	$	0.6		$	1.0

Amortization expense was $0.4 million, $0.3 million and $0.4 million in 2022, 2021 and 2020, respectively. The charge is included in interest expense, see Note 2 of the Notes to the Consolidated Financial Statements.

The obligations of the Company under the credit facility are secured obligations and guaranteed by certain subsidiaries of the Company. Amounts available under the revolving facility may be borrowed in U.S. dollars, Euros, British pounds and other freely convertible currencies.

The Company’s credit facility contains restrictive clauses which may constrain our activities and limit our operational and financial flexibility. The facility obliges the lenders to comply with a request for utilization of finance unless there is an event of default outstanding. Events of default are defined in the credit facility and include a material adverse change to our assets, operations or financial condition. The facility contains a number of restrictions that limit our ability, amongst other things, and subject to certain limited exceptions, to incur additional indebtedness, pledge our assets as security, guarantee obligations of third parties, make investments, undergo a merger or consolidation, dispose of assets, or materially change our line of business.

In addition, the credit facility contains terms which, if breached, would result in it becoming repayable on demand. It requires, among other matters, compliance with the following financial covenant ratios measured on a quarterly basis: (1) the ratio of net debt to EBITDA shall not be greater than 3.0:1 and (2) the ratio of EBITDA to net interest shall not be less than 4.0:1. Management has determined that the Company has not breached these covenants throughout the period to December 31, 2022 and does not expect to breach these covenants for the next 12 months.

The weighted average rate of interest on borrowings was 0.00% at December 31, 2022 and 0.00% at December 31, 2021. Payments of interest on long-term debt were $0.0 million, $0.0 million and $0.8 million in 2022, 2021 and 2020, respectively.

The net cash outflows in respect of refinancing costs were $0.0 million, $0.0 million and $0.3 million in 2022, 2021 and 2020, respectively.