Debt

6 Months Ended

Jun. 30, 2024

Debt Disclosure [Abstract]

Debt

Debt

The Company’s debt as of June 30, 2024 and December 31, 2023, consisted of the following (in thousands):

	June 30, 2024		December 31, 2023
Senior Secured Credit Facility:
Revolving credit facility	$	82,500	$	46,000
Term Loan	301,875		310,625
Delayed Draw Term Loan	183,750		188,750
Total borrowings	568,125		545,375
Add: Remaining premium on interest rate caplets financed as debt	1,571		2,059
Less: Debt issuance costs	(3,955)		(4,860)
Total debt, net of debt issuance costs	565,741		542,574
Less: Current maturities	(28,489)		(28,483)
Total debt, net of current maturities	$	537,252	$	514,091

As of June 30, 2024, the weighted-average interest rate on the Company’s borrowings was approximately 7.7%.

Interest rate caplets

The Company manages its exposure to some of its interest rate risk through the use of interest rate caplets, which are derivative financial instruments. On January 12, 2022, the Company hedged the variability of the cash flows attributable to changes in the 1-month LIBOR/SOFR interest rates on the first $300 million of the term loan under the Company’s existing credit agreement, as amended, by entering into a 4-year series of 48 deferred premium caplets (“caplets”)

The Company recognized an unrealized loss, net of taxes, on the change in fair value of the caplets of $1.1 million and an unrealized gain of less than $0.1 million for the three and six months ended June 30, 2024, respectively. In comparison, the Company recognized an unrealized gain of $2.1 million and an unrealized loss of $0.1 million, net of taxes, for the three and six months ended June 30, 2023, respectively. For more information on how the Company determines the fair value of the caplets, see Note 12. The Company also recognized interest income on the caplets of $2.5 million and $5.1 million for the three and six months ended June 30, 2024. In comparison, the Company recognized interest income on the caplets of $2.3 million and $4.2 million for the three and six months ended June 30, 2023, respectively. These amounts are reflected in interest expense, net in the condensed consolidated statements of operations and other comprehensive income.