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Financing Agreement
 3 Months Ended
Mar. 31, 2022
Debt Disclosure [Abstract]  
Financing Agreement Financing Agreements
The carrying value of debt, finance lease obligations, and notes payable and the average related interest rates were as follows (in millions):
Average interest rate as of March 31, 2022MaturityMarch 31, 2022December 31, 2021
Revolving loan facility1.46%June 2026$160.0 $— 
Term loan facility1.58%June 2026864.0 876.0 
Incremental term loan1.33%December 2022500.0 500.0 
Senior notes—fixed rate4.23%July 2028350.0 350.0 
Finance lease obligations5.21%Various through 202912.9 13.5 
Notes payable and other4.25%Various through 203067.1 68.3 
Debt issuance costs(6.7)(7.1)
Total debt, finance lease obligations, and notes payable$1,947.3 $1,800.7 
Less: current maturities553.3 553.3 
Total long-term debt, finance lease obligations, and notes payable$1,394.0 $1,247.4 
In December 2010, the Company entered an unsecured Master Note Purchase Agreement, which has been amended and supplemented, under which it has issued senior notes. In July 2018, the Company issued $350 million of unsecured senior notes due July 2028 which remain outstanding.
The Company maintains an unsecured credit facility which consists of a term loan facility (the “Term Loan Facility”) and a revolving loan facility (the “Revolving Loan Facility”). In July 2018, the Company amended its unsecured credit facility to increase its Term Loan Facility to $1,180 million, of which $864 million was outstanding as of March 31, 2022. In June 2021, the Company further amended its unsecured credit facility to increase its Revolving Loan Facility to $1.0 billion and extend the maturity date to June 2026. Interest is charged at rates based on a LIBOR or “prime” base rate.
On December 17, 2021, the Company amended the credit facility to provide an incremental 364-day term loan (the “Incremental Term Loan”) in the amount of $500.0 million. The incremental term loan, which was fully drawn on closing, is unsecured and matures on December 16, 2022. There are no required principal payments prior to the maturity date. In addition to the payment of the $500.0 million Incremental Term Loan, the Company is required to make principal payments under the Term Loan Facility totaling $45 million over the next 12 months. These payments are classified as current maturities in the consolidated balance sheets.
The credit facility and the Master Note Purchase Agreement contain covenants that require the Company to maintain certain financial ratios, including minimum interest coverage and maximum leverage ratios. The agreements also require the Company to maintain an interest coverage ratio of not less than 3.00 to 1.00 and a leverage ratio of not more than 3.50 to 1.00 on a rolling four quarter basis. The Company was in compliance with all such covenants as of March 31, 2022.
Debt issuance costs are recognized as a reduction in the carrying value of the related long-term debt in the consolidated balance sheets and are being amortized to interest expense in the consolidated statements of income over the expected remaining terms of the related debt.
As a component of the Boat Holdings merger agreement, the Company has committed to make a series of deferred payments to the former owners following the closing date of the merger through July 2030. The original discounted payable was for $76.7 million, of which $61.0 million was outstanding as of March 31, 2022. The outstanding balance is included in long-term debt and current portion of long-term debt in the consolidated balance sheets.