LONG-TERM DEBT

3 Months Ended

Mar. 31, 2022

NOTE 8 LONG-TERM DEBT

On May 14, 2020, in connection with the TPG Acquisition, the Company entered into the Credit Agreement among LifeStance Health Holdings, Inc., Lynnwood Intermediate Holdings, Inc., Capital One, National Association, and each lender party thereto (the “May 2020 Credit Agreement”). The term loans and delayed draw loans are payable in quarterly principal and interest payments, with a maturity date of May 14, 2026. The interest rate is a variable interest rate determined at LIBOR plus 3.00% to 7.09%. The May 2020 Credit Agreement provides for an alternative rate structure to LIBOR. The term loans and delayed draw loans are collateralized by the tangible assets and stock pledge of the Company.

The May 2020 Credit Agreement requires the Company to maintain compliance with certain restrictive financial covenants related to earnings, leverage ratios, and other financial metrics. The Company was in compliance with all debt covenants at March 31, 2022 and December 31, 2021.

Long-term debt consists of the following:


	March 31, 2022			December 31, 2021
Term loans	$	70,427		$	70,665
Delayed Draw loans		90,472			90,565
Revolving loan		20,000			—
Total long-term debt		180,899			161,230
Less: Current portion of long-term debt		(1,323	)		(1,323	)
Less: Unamortized debt issue costs		(2,196	)		(2,491	)
Total Long-Term Debt, Net of Current Portion and Unamortized Debt Issue Costs	$	177,380		$	157,416

The current portion of long-term debt is included within other current liabilities on the consolidated balance sheets.

Interest expense consists of the following:


	Three Months Ended March 31,
	2022		2021
Interest expense	$	3,441	$	8,632

Future principal payments on long-term debt are as follows:


Year Ended December 31,	Amount
Remainder of 2022	$	992
2023		1,323
2024		1,323
2025		21,323
2026		155,938
Total	$	180,899

The fair value of long-term debt is based on the present value of future payments discounted by the market interest rates or the fixed rates based on current rates offered to the Company for debt with similar terms and maturities, which is a Level 2 fair value measurement. Long-term debt is presented at carrying value on the unaudited consolidated balance sheets. The fair value of long-term debt at March 31, 2022 and December 31, 2021 was $196,950 and $186,497, respectively.

Revolving Loan

Under the May 2020 Credit Agreement, the Company has a revolving loan commitment from Capital One in the amount of $20,000. Any borrowing on the revolving loan is due in full on May 14, 2025. The revolving loan can be drawn upon at an interest rate equal to LIBOR plus 4.50% to 4.75%, depending on certain financial ratios. The unused revolving loan incurs a commitment fee of 0.5% per annum.