3. Debt and Financing
Our outstanding debt as of March 31, 2021, which includes our $176.5 million of additional United States Treasury (“UST”) Loan Tranche B draws during the three months then ended, consisted of the following:
(in millions) |
|
Par Value |
|
|
Discount |
|
|
Commitment Fee |
|
|
Debt
Issuance
Costs |
|
|
Book Value |
|
|
Effective
Interest
Rate |
|
Term Loan |
|
$ |
613.0 |
|
|
$ |
(19.5 |
) |
|
$ |
— |
|
|
$ |
(8.6 |
) |
|
$ |
584.9 |
|
(a) |
|
9.5 |
% |
ABL Facility |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
N/A |
|
UST Loan Tranche A(b) |
|
|
304.4 |
|
|
|
— |
|
|
|
(16.5 |
) |
|
|
(4.3 |
) |
|
|
283.6 |
|
(c) |
|
6.5 |
% |
UST Loan Tranche B |
|
|
251.3 |
|
|
|
— |
|
|
|
(13.8 |
) |
|
|
(3.6 |
) |
|
|
233.9 |
|
(c) |
|
6.5 |
% |
Secured Second A&R CDA |
|
|
24.1 |
|
|
|
— |
|
|
|
— |
|
|
|
(0.1 |
) |
|
|
24.0 |
|
|
|
7.7 |
% |
Unsecured Second A&R CDA |
|
|
43.9 |
|
|
|
— |
|
|
|
— |
|
|
|
(0.1 |
) |
|
|
43.8 |
|
|
|
7.7 |
% |
Lease financing obligations |
|
|
225.5 |
|
|
|
— |
|
|
|
— |
|
|
|
(0.2 |
) |
|
|
225.3 |
|
(d) |
|
17.3 |
% |
Total debt |
|
$ |
1,462.2 |
|
|
$ |
(19.5 |
) |
|
$ |
(30.3 |
) |
|
$ |
(16.9 |
) |
|
$ |
1,395.5 |
|
|
|
|
|
Current maturities of Unsecured Second A&R CDA |
|
|
(1.3 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1.3 |
) |
|
|
|
|
Current maturities of lease financing obligations |
|
|
(3.1 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3.1 |
) |
|
|
|
|
Long-term debt |
|
$ |
1,457.8 |
|
|
$ |
(19.5 |
) |
|
$ |
(30.3 |
) |
|
$ |
(16.9 |
) |
|
$ |
1,391.1 |
|
|
|
|
|
(a) |
Variable interest rate based on the Eurodollar rate, which is currently determined by the 1, 3 or 6-month USD LIBOR, with a floor of 1.0%, plus a fixed margin of 7.5%. |
(b) |
The Par Value and the Book Value both reflect the accumulated cash funds that have been drawn and the accumulated paid-in-kind interest, which was $4.4 million as of March 31, 2021. |
(c) |
Variable interest rate based on the Eurodollar rate, which is currently determined by the 1, 2, 3 or 6-month USD LIBOR, with a floor of 1.0%, plus a fixed margin of 3.5%. |
(d) |
Interest rate for lease financing obligations is derived from the difference between total rent payment and calculated principal amortization over the life of lease agreements. |
On April 1, 2021, the Company drew $129.8 million of funds on the Tranche B UST Credit Agreement and is described in Note 9 to our consolidated financial statements.
Principal Maturities of Long-Term Debt
The principal maturities of long-term debt for the next five years are as follows:
(in millions) |
|
Principal Maturity Amount |
|
2021 - remaining portion |
|
$ |
3.4 |
|
2022 |
|
|
70.7 |
|
2023 |
|
|
4.9 |
|
2024 |
|
|
1,171.1 |
|
2025 |
|
|
0.2 |
|
Thereafter |
|
|
211.9 |
|
Total |
|
$ |
1,462.2 |
|
Fair Value Measurement
The book value and estimated fair values of our long-term debt, including current maturities, are summarized as follows:
|
|
March 31, 2021 |
|
|
December 31, 2020 |
|
(in millions) |
|
Book Value |
|
|
Fair Value |
|
|
Book Value |
|
|
Fair Value |
|
Term Loan |
|
$ |
584.9 |
|
|
$ |
615.8 |
|
|
$ |
582.7 |
|
|
$ |
611.0 |
|
UST Loans |
|
|
517.5 |
|
|
|
481.4 |
|
|
|
349.2 |
|
|
|
322.0 |
|
Second A&R CDA |
|
|
67.8 |
|
|
|
68.3 |
|
|
|
67.8 |
|
|
|
67.8 |
|
Lease financing obligations |
|
|
225.3 |
|
|
|
224.8 |
|
|
|
225.7 |
|
|
|
225.8 |
|
Total debt |
|
$ |
1,395.5 |
|
|
$ |
1,390.3 |
|
|
$ |
1,225.4 |
|
|
$ |
1,226.6 |
|
The fair values of the Term Loan and Second A&R CDA were estimated based on observable prices (level two inputs for fair value measurements). The fair value of the UST Loans is estimated using certain inputs that are unobservable (level three input for fair value measurement), which are based on the discounted amount of future cash flows using our current estimated incremental rate of borrowing for similar liabilities or assets. The fair value of the lease financing obligations are estimated using a publicly traded secured loan with similar characteristics (level three input for fair value measurement).
|