Debt

6 Months Ended

Jun. 30, 2024

Debt Disclosure [Abstract]

Debt

Debt

Our debt consists of the following ($ in thousands):

			Outstanding Balance as of
	Interest Rate	Maturity Date	June 30, 2024		December 31, 2023
Senior Secured Credit Facilities
Revolving Credit Facility (1)	SOFR + 3.50%	January 5, 2028	$	—	$	—
Term Loan due 2029 (2)	SOFR + 2.75%	January 5, 2029	1,083,500		1,089,000
Total Senior Secured Credit Facilities (at stated value)			1,083,500		1,089,000
Unamortized discount			(23,309)		(26,466)
Unamortized debt issuance costs			(5,633)		(6,380)
Total Senior Secured Credit Facilities, net			$	1,054,558	$	1,056,154
Finance lease obligations			$	19,106	$	5,222
Total debt, net			$	1,073,664	$	1,061,376

________

(1)We had an available balance on our Revolving Credit Facility of $225.0 million as of June 30, 2024 and December 31, 2023.

(2)The effective interest rate for the Term Loan due 2029 was 8.09% and 8.59% as of June 30, 2024 and December 31, 2023, respectively.

Credit Agreement Amendment

On June 24, 2024, we entered into the Second Amendment to Second Amended and Restated Credit Agreement (the “Second Amendment”) to decrease the interest rate applicable to the Term Loan due 2029 by 0.50% to, at our option, either a base rate plus a margin of 1.75% or the Secured Overnight Financing Rate (“SOFR”) plus a margin of 2.75%. All other terms of the Senior Secured Credit Facility remain unchanged.

The repricing of the Term Loan due 2029 was accounted for as a partial modification and partial extinguishment of debt, which resulted in a loss on extinguishment of debt of $1.0 million and transaction costs of $1.3 million. The transaction costs are included in

selling, general, and administrative expense in the Condensed Consolidated Statements of Operations.

Finance lease obligation

During the three months ended June 30, 2024, we entered into a ten-year finance lease arrangement with a third-party for the use of equipment to produce electricity and hot water at the Hilton Rose Hall Resort & Spa. Concurrently, we entered into a twelve-year lease arrangement with another third-party for the use of equipment to store liquified natural gas at the resort. We recognized a $5.5 million right-of-use asset and $5.1 million lease liability within property and equipment, net and debt, respectively, for these finance leases on the Condensed Consolidated Balance Sheet.

During the three months ended June 30, 2024, we entered into a finance lease arrangement with a third-party for the use of two condo units, which we expect to purchase in the third quarter, at the Hyatt Ziva Los Cabos. We recognized a $9.0 million right-of-use asset and lease liability within property and equipment, net and debt, respectively, for the finance lease on the Condensed Consolidated Balance Sheet.

Financial maintenance covenants

We were in compliance with all applicable covenants as of June 30, 2024. A summary of our applicable covenants and restrictions is as follows:

Debt	Covenant Terms
Senior Secured Credit Facility	We are subject to a total net leverage ratio of 5.20x if we have more than 35% drawn on the Revolving Credit Facility.