Long-Term Debt and Other Borrowings

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

Debt Disclosure

LONG-TERM DEBT AND OTHER BORROWINGS

Consolidated long-term debt as of March 31, 2022 and December 31, 2021, consists of the following:

	Scheduled Maturity	March 31, 2022		December 31, 2021
		(in thousands)
Swedish Credit Facility	December 31, 2022	$	1,533	$	—
Asset-based credit agreement(1)	May 31, 2025	—		67
Term credit agreement(2)	September 10, 2025	152,531		151,869
Total debt		154,064		151,936
Less current portion		(1,533)		—
Total long-term debt		$	152,531	$	151,936

(1) Net of unamortized deferred financing costs of $0.8 million and $1.6 million as of March 31, 2022 and December 31, 2021, respectively. Additional deferred financing costs of $0.6 million as of March 31, 2022, were classified as other long-term assets on the accompanying consolidated balance sheet as the deferred costs exceeded the outstanding balance.

(2) Net of unamortized discount of $4.2 million and $4.5 million as of March 31, 2022 and December 31, 2021, respectively, and net of unamortized deferred financing costs of $6.3 million and $6.7 million as of March 31, 2022 and December 31, 2021, respectively.

Swedish Credit Facility

In January 2022, the Company entered into a new revolving credit facility for seasonal working capital needs of subsidiaries in Sweden (“Swedish Credit Facility”). As of March 31, 2022, we had US$1.5 million outstanding and availability of approximately US$3.8 million under the Swedish Credit Facility. During each year, all outstanding loans under the Swedish Credit Facility must be repaid for at least 30 consecutive days. Borrowings bear interest at a rate of 2.95% per annum. The Swedish Credit Facility expires on December 31, 2022 and the Company intends to renew it annually.

Finland Credit Agreement

The Company also entered into a new agreement guaranteed by certain accounts receivable and inventory in Finland (“Finland Credit Agreement”). As of March 31, 2022, there were US$1.8 million of letters of credit outstanding against the Finland Credit Agreement.

ABL Credit Agreement

As of March 31, 2022, our asset-based credit agreement (“ABL Credit Agreement’) provides for a senior secured revolving credit facility of up to $80.0 million, with a $20.0 million accordion. The credit facility is subject to a borrowing base determined monthly by reference to the value of inventory and accounts receivable, and includes a sublimit of $20.0 million for letters of credit, a swingline loan sublimit of $11.5 million, and a $15.0 million sub-facility subject to a borrowing base consisting of certain trade receivables and inventory in the United Kingdom.

As of March 31, 2022, we had $0.8 million outstanding and $6.0 million in letters of credit and guarantees under our ABL Credit Agreement. Subject to compliance with the covenants, borrowing base, and other provisions of the ABL Credit Agreement that may limit borrowings, we had availability of $58.6 million under this agreement.

Term Credit Agreement

    As of March 31, 2022 TETRA had $152.5 million outstanding, net of unamortized discounts and unamortized deferred financing costs under the Term Credit Agreement. Our Term Credit Agreement requires us to offer to prepay a percentage of Excess Cash Flow (as defined in the Term Credit Agreement) within five business days of filing our Annual Report. As of March 31, 2022, the interest rate per annum on borrowings under the Term Credit Agreement is 7.25%. For additional information on our Term Credit agreement, see our 2021 Annual Report.

Our credit agreements contain certain affirmative and negative covenants, including covenants that restrict the ability to pay dividends or other restricted payments. As of March 31, 2022, we are in compliance with all covenants under the credit agreements.