Long-Term Debt and Finance Leases

9 Months Ended

Sep. 30, 2023

Long-Term Debt and Finance Leases

Long Term Debt and Finance Leases

Note 7. Long-Term Debt and Finance Leases

The following table summarizes the Company’s long-term debt and finance leases:

							December 31,
	September 30, 2023						2022
	Available
	borrowing		Effective		Outstanding		Outstanding
	capacity		interest rate(1)		balance		balance
	(in millions)
Long-term debt:
Term B Loans, net(2)	$	—	8.39	%	$	712.9	$	717.7
Revolving Credit Facility(3)		86.4	8.13	%		159.0		9.0
Total long-term debt	$	86.4				871.9		726.7
Finance lease obligations						21.2		20.6
Total long-term debt and finance lease obligations						893.1		747.3
Debt issuance costs, net(4)						(4.0)		(4.6)
Sub-total						889.1		742.7
Less current portion						(17.2)		(17.7)
Long-term portion					$	871.9	$	725.0

(1) Represents the effective interest rate in effect for all borrowings outstanding as of September 30, 2023 pursuant to each debt instrument including the applicable margin.

(2) At September 30, 2023 and December 31, 2022 includes $4.3 million and $5.0 million of net discounts, respectively.

(3) Available borrowing capacity at September 30, 2023 represents $250.0 million of total availability less borrowings of $159.0 million on the Revolving Credit Facility and outstanding letters of credit of $4.6 million. Letters of credit are used in the ordinary course of business and are released when the respective contractual obligations have been fulfilled by the Company.

(4) At September 30, 2023 and December 31, 2022 debt issuance costs include $3.1 million and $3.5 million related to Term B Loans and $0.9 million and $1.1 million related to the Revolving Credit Facility, respectively.

Refinancing of the Term B Loans and Revolving Credit Facility

On December 20, 2021, the Company entered into a new secured credit agreement with Morgan Stanley Senior Funding, Inc., as administrative agent, collateral agent and issuing bank (the “Credit Agreement”). The Credit Agreement consists of (i) a new Term B Loan in an aggregate principal amount of $730.0 million and (ii) a $250.0 million revolving credit commitment. The Term B Loan matures in December 2028 and bears interest at a rate equal to the Secured Overnight Financing Rate (“SOFR”) plus 3.00%, subject to a 50 basis point floor, and the revolving credit commitment bears interest at a rate equal to SOFR plus 2.75%, subject to a 50 basis point commitment fee rate for unused commitments, and matures in December 2026. The Senior Secured Term B loans and Revolving Credit Facility are secured on a first-priority basis by a lien on substantially all of the Company’s assets, subject to certain exceptions and permitted liens.

As of September 30, 2023, the Company was in compliance with all debt covenants.