Borrowing Arrangements

9 Months Ended

Sep. 30, 2023

Debt Disclosure [Abstract]

Borrowing Arrangements

8. Borrowing Arrangements

Long-term borrowings, as of September 30, 2023 (unaudited) and December 31, 2022, in order of preference, were as follows:

	Amount Outstanding
(millions)	September 30, 2023			December 31, 2022
Senior Credit Facility, net of original discount on borrowings(1)	$	337.7		$	322.3
Other borrowings(2)		24.1			24.3
Deferred financing costs		(2.0	)		(2.4	)
Total obligations		359.8			344.2
Less: Current portion of long-term borrowings		14.7			12.4
Total long-term borrowings, excluding current portion	$	345.1		$	331.8

(1)Included discount on borrowings of $1.1 million and $1.3 million as of September 30, 2023 and December 31, 2022, respectively.

(2)Included finance lease liabilities of $23.0 million and $23.2 million as of September 30, 2023 and December 31, 2022, respectively. See Note 3. Leases for further discussion.

Senior Credit Facility

On April 21, 2022 (the “Fifth Amendment Effective Date”), the Company entered into a fifth amendment (the “Fifth Amendment”) to the Company’s credit agreement (as amended prior to the Fifth Amendment Effective Date, the “Credit Agreement”; the Credit Agreement, as amended by the Fifth Amendment, the “Amended Credit Agreement”) with Bank of America, N.A. (“Bank of America”), as Administrative Agent, swing-line lender and a letter of credit issuer; certain subsidiaries of the Company, as guarantors; and the lenders party thereto (the “Lenders”), pursuant to which the Lenders have made available to the Company a senior secured credit facility (the “Senior Credit Facility”). The Senior Credit Facility permits aggregate borrowings of $600.0 million consisting of (i) a revolving credit facility of up to $400.0 million at any time outstanding, which includes a letter of credit facility that is limited to $100.0 million at any time outstanding, and (ii) a term loan facility of $200.0 million. The maturity date of the Senior Credit Facility is April 21, 2027.

As of September 30, 2023, the Company was in compliance with its debt covenants under the Amended Credit Agreement.

As of September 30, 2023, the Company had $39.1 million of letters of credit outstanding under the Senior Credit Facility and borrowings against the Senior Credit Facility aggregated to $338.8 million.

The weighted average interest rate on the Senior Credit Facility was 6.7% and 4.6% during the nine months ended September 30, 2023 and 2022, respectively. That rate included the letters of credit for both years and interest rate collars during the nine months ended September 30, 2022. The weighted average interest rate on all outstanding borrowings, not including letters of credit, was 7.2% and 4.9% during the nine months ended September 30, 2023 and 2022, respectively.

Subordinated Convertible Debentures

The Company acquired Subordinated Convertible Debentures ("Convertible Debentures") as a result of the October 2, 2012 acquisition of Central Parking Corporation. As of October 2, 2012, the Convertible Debentures were no longer redeemable for shares. The Convertible Debentures mature on April 1, 2028 at $25 per share. The Convertible Debenture holders have the right to redeem the Convertible Debentures for $19.18 per share upon acceleration or earlier repayment of the Convertible Debentures. There have been no redemptions of the Convertible Debentures during the periods ended September 30, 2023 and December 31, 2022. The approximate redemption value of the Convertible Debentures outstanding as of September 30, 2023 and December 31, 2022 was $1.1 million.