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Debt
12 Months Ended
Dec. 31, 2023
Debt Disclosure [Abstract]  
Debt

Note 10. Debt

The Company’s debt as of December 31, 2023 and 2022 consisted of the following:

 

 

December 31,

 

 

 

2023

 

 

2022

 

Term Loan A Facility

 

$

125.0

 

 

$

125.0

 

Borrowings under the Revolving Facility

 

 

 

 

 

45.0

 

Unamortized debt issuance costs

 

 

(0.5

)

 

 

(0.8

)

Total long-term debt

 

$

124.5

 

 

$

169.2

 

Credit AgreementOn May 27, 2021 (the “Restatement Effective Date”), the Company amended and restated its credit agreement dated as of September 30, 2016 (as in effect prior to such amendment and restatement, the “Credit Agreement,” and the Credit Agreement, as so amended and restated, the “Amended and Restated Credit Agreement”), by and among the Company, the lenders party thereto from time to time and JPMorgan Chase Bank, N.A., as administrative agent and collateral agent, to, among other things, provide for a $200.0 million delayed-draw term loan A facility (the “Term Loan A Facility”) (bearing interest at a rate equal to the sum of the London Interbank Offered Rate (“LIBOR”) plus a margin ranging from 2.00% to 2.50% based upon the Company’s Consolidated Net Leverage Ratio), extend the maturity of the $300.0 million revolving credit facility (the “Revolving Facility”) to May 27, 2026 and modify the financial maintenance and negative covenants in the Credit Agreement.

On May 11, 2023, the Company entered into the first amendment to the Amended and Restated Credit Agreement to change the reference rate from LIBOR, which ceased being published on June 30, 2023, to the Secured Overnight Financing Rate (“SOFR”) for both the Term Loan A Facility and the Revolving Facility. The SOFR interest rate was effective for the Revolving Facility and the Term Loan A on May 30, 2023 and June 12, 2023, respectively. No other significant terms of the Amended and Restated Credit Agreement were amended. The Amended and Restated Credit Agreement contains a number of covenants, including a minimum Interest Coverage Ratio and the Consolidated Net Leverage Ratio, as defined in and calculated pursuant to the Credit Agreement, that, in part, restrict the Company’s ability to incur additional indebtedness, create liens, engage in mergers and consolidations, make restricted payments and dispose of certain assets. The Credit Agreement generally allows annual dividend payments of up to $20.0 million in the aggregate.

Term Loan A FacilityOn October 14, 2021, the Company drew $200.0 million from the Term Loan A Facility and used the proceeds to redeem the Companys Notes on October 15, 2021, as further described below. During the year ended December 31, 2021, the Company prepaid $75.0 million of the $200.0 million principal amount of the Term Loan A Facility and recognized a pre-tax loss on extinguishment of debt of $0.6 million.

Prior to the prepayment, the principal amount of loans under the Term Loan A Facility were due and payable in equal quarterly installments of 1.25% of the original principal amount of the loans during the first three years after the Restatement Effective Date, commencing on March 31, 2022, and 2.50% of the original principal amount of the loans thereafter. As a result of the prepayment, quarterly installments of the original principal amount are no longer required and the entire unpaid principal amount of the Term Loan A Facility is due and payable in full on May 27, 2026. Voluntary prepayments of the Term Loan A Facility are permitted at any time without premium or penalty. The fair value of the Term Loan A Facility was $124.1 million and $121.6 million as of December 31, 2023 and 2022, respectively, and was determined to be Level 2 under the fair value hierarchy. The weighted-average interest rate on borrowings under the Term Loan A Facility was 7.0% and 3.7% for the years ended December 31, 2023 and 2022, respectively.

Revolving Facility— As of December 31, 2023, there were no borrowings outstanding under the Revolving Facility. As of December 31, 2022, there were $45.0 million of borrowings outstanding under the Revolving Facility. The weighted-average interest rate on borrowings under the Revolving Facility was 7.3% and 4.3% for the years ended December 31, 2023 and 2022, respectively. The fair value of the Company’s borrowings under the Revolving Facility is classified as Level 2 under the fair value hierarchy and approximated its carrying value as of December 31, 2022, as the Revolving Facility carries a variable rate of interest reflecting current market rates.

As of December 31, 2023, the Company had $2.5 million in outstanding letters of credit and bank guarantees, of which $1.0 million of the outstanding letters of credit reduced the availability under the Revolving Facility. As of December 31, 2022, the Company had $2.6 million in outstanding letters of credit and bank guarantees, of which none reduced the availability under the Revolving Facility.

8.25% Senior Notes Due 2024 (the “Notes”)—On October 15, 2021, the Company redeemed the remaining outstanding Notes balance of $233.0 million at the redemption price of 102.063, plus accrued and unpaid interest of $9.6 million, using $200.0 million of proceeds from the Companys Term Loan A Facility and cash. The Company recorded a pre-tax loss on the extinguishment of the Notes of $6.8 million during the year ended December 31, 2021.

The following table summarizes interest expense, net included on the audited Consolidated Statements of Operations:

 

 

Year Ended December 31,

 

 

 

2023

 

 

2022

 

 

2021

 

Interest incurred

 

$

17.9

 

 

$

10.0

 

 

$

19.8

 

Interest income

 

 

(2.1

)

 

 

(0.8

)

 

 

(0.6

)

Loss on debt extinguishment

 

 

 

 

 

 

 

 

7.4

 

Interest expense, net

 

$

15.8

 

 

$

9.2

 

 

$

26.6