Interest Expense

6 Months Ended

Jun. 30, 2024

Interest and Debt Expense [Abstract]

Interest Expense

Interest Expense

The following table presents the components of interest expense: 

	Three Months Ended  June 30,				Six Months Ended  June 30,
	2024		2023		2024		2023
	(Dollars in thousands)
Interest incurred on debt	$	17,110	$	11,325	$	34,205	$	21,947
Accretion of original issue discount	521		1,308		1,041		1,476
Amortization of debt issuance costs	749		2,488		1,497		3,143
Amortization of interest rate swap deferred gains	(2,771)		(45)		(5,508)		(45)
Realized gain on termination of de-designated interest rate swap	—		(6,918)		—		(6,918)
Unrealized loss on de-designated interest rate swap	—		5,749		—		7,110
Total interest expense	$	15,609	$	13,907	$	31,235	$	26,713

The 2023 Senior Secured Notes and the 2020 Senior Secured Notes carry fixed interest rates of 9.875% and 4.625%, respectively.

In June 2023, the net proceeds from the issuance of the 2023 Senior Secured Notes were used to repay the $433.7 million of principal outstanding on the 2018 Term Loan Facility. The repayment of the 2018 Term Loan Facility was accounted for as a debt extinguishment and triggered $1.2 million of accelerated accretion of the original issue discount and $1.9 million of accelerated amortization of debt issuance costs. The 2023 Senior Secured Notes were accounted for as new debt and the related discount and debt issuance costs were deferred.

In connection with the repayment of the 2018 Term Loan Facility in June 2023, we terminated the outstanding interest rate swap contracts that were in place to fix the cash flows associated with the risk in variability in the one-month USD London Interbank Offered Rate (“USD LIBOR”) for the 2018 Term Loan Facility. As a result of the swaps termination, we recorded realized gains of $6.9 million in interest expense relative to our de-designated swap and we deferred realized gains of $13.5 million into accumulated other comprehensive loss (“AOCL”) in connection with our designated swap. The gains

deferred into AOCL for the designated swap are being amortized into interest expense until August 2024, consistent with the term of the discontinued cash-flow hedging relationship.

See Note 4, “Debt and Liquidity” for details of our debt and Note 9, “Fair Value Measurements and Derivative Instruments” for additional details on our interest rate swaps and embedded derivative.