DEBT

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

DEBT

NOTE 4 – DEBT

On November 7, 2022, the Company entered into a credit agreement with a syndicate of lenders (the "Credit Agreement") maturing November 7, 2027. Pursuant to the Credit Agreement, there is (i) an $85.0 million aggregate principal amount of term loans and (ii) a revolving loan facility in an aggregate principal amount of up to $5.0 million. The proceeds were used, in part, to pay off the Company’s $83.6 million outstanding principal balance under its previous credit facility.

Under the Credit Agreement, all outstanding loans bear interest based on either a base rate or SOFR plus an applicable per annum margin. The applicable per annum margin is 2.0% or 3.0% for base rate or SOFR, respectively, if the Company's total leverage ratio is equal to or greater than 2.0x. If the Company's total leverage ratio is equal to or greater than 1.0x and less than 2.0x, the applicable per annum margin is 1.5% or 2.5% for base rate or SOFR, respectively. If the Company's total

leverage ratio is below 1.0x, the applicable per annum margin is 1.0% or 2.0% for base rate or SOFR, respectively. As of March 31, 2023, the interest rate was 7.23%.

Total borrowings as of March 31, 2023 and December 31, 2022 were as follows (in 000’s):

	March 31, 2023		December 31, 2022
Term loan	$	84,469	$	85,000
Unamortized debt discounts and issuance costs	(1,196)		(1,455)
Total debt, net	83,273		83,545
Less: Current portion	(2,125)		(2,125)
Long-term debt, net	$	81,148	$	81,420

As of March 31, 2023 and 2022, the Company had $5.0 million available on the revolving credit facility.

The scheduled future maturities of long-term debt as of March 31, 2023 is as follows (in 000’s):

2023 (excluding the three months ended March 31, 2023)	$	1,594
2024	2,125
2025	4,250
2026	6,375
2027	70,125
Total maturities	$	84,469

All borrowings under the Credit Agreement are cross collateralized by substantially all assets of the Company and are subject to certain restrictive covenants including quarterly total leverage ratio and fixed charge ratio requirements. The Company is in compliance with all covenants and has no letter of credit outstanding as of March 31, 2023 and 2022.