v3.25.1
Debt Obligations
 3 Months Ended
Mar. 31, 2025
Debt Disclosure [Abstract]  
Debt Obligations

Note 11. Debt Obligations

Debt obligations consists of the following:

 

 

 

As of

 

 

As of

 

 

 

March 31,

 

 

December 31,

 

 

 

2025

 

 

2024

 

 

 

 

 

 

 

 

Revolver facility

 

$

37,000

 

 

$

-

 

Debt issuance costs

 

 

(3,080

)

 

 

(3,308

)

Revolver facility, net

 

$

33,920

 

 

$

(3,308

)

 

 

 

 

 

 

 

Term Loan

 

$

325,000

 

 

$

325,000

 

Debt issuance costs

 

 

(1,769

)

 

 

(1,909

)

Term loan, net

 

$

323,231

 

 

$

323,091

 

Total debt obligations, net

 

$

357,151

 

 

$

319,783

 

The principal balance consists of the following tranches:

 

 

 

As of March 31, 2025

 

 

Principal Amount

 

 

Base Rate

 

 

SOFR Rate

 

 

Rate Expiration Date

 

 

 

 

 

 

 

 

 

 

 

 

Term Loan

 

$

325,000

 

 

 

2.60

%

 

 

4.29

%

 

5/5/2025

Revolver - Tranche 1

 

 

37,000

 

 

 

2.60

%

 

 

4.32

%

 

4/28/2025

Total

 

$

362,000

 

 

 

 

 

 

 

 

 

Revolving Credit Facility and Term Loan

On December 22, 2021, the Company entered into a credit agreement (the "Credit Agreement") with JPMorgan, in its capacity as administrative agent and collateral agent, and Texas Capital Bank, as joint lead arrangers and joint bookrunners, and the other loan parties party thereto. The Credit Agreement consists of two facilities. The first is a revolving credit facility with an available balance of $125 million (the "Revolver Facility"). The second is a term loan for $125 million (the "Term Loan"). In addition to the Term Loan and Revolver Facility, the Credit Agreement also includes a $125 million accordion feature. In October 2022, the accordion feature was exercised split into $87.5 million worth of term loan and $37.5 million of revolver. On August 1, 2024, the Company entered into a restatement agreement, which amends and restates the Credit Agreement (the "Amended and Restated Credit Agreement"). The Amended and Restated Credit Agreement provides for a new senior secured revolving credit facility in the amount of $175 million, with a $10 million sublimit for the issuance of letters of credit (the "New Revolving Facility), and a new senior term loan facility in the amount of $325 million (the "New Term Loan" and, together with the New Revolving Facility, the "New Credit Facilities"). The New Credit Facilities were used to refinance and replace the credit facilities under the Credit Agreement and for general corporate purposes, including acquisitions.

The New Credit Facilities are "Term SOFR Loans" meaning loans bearing interest based upon the "Adjusted Term SOFR Rate". The Adjusted Term SOFR Rate is the Secured Overnight Financing Rate ("SOFR") at the date of election, plus 2.60%. The Company can elect one or three months for the New Revolving Facility and one, three, or six months for the New Term Loan. Principal for the New Term Loan is contractually repaid at a rate of 1.25% on the term loan quarterly effective December 31, 2025. The New Revolving Credit Facility has no contractual principal repayments until maturity, which is

August 1, 2028 for both facilities. The New Credit Facilities are guaranteed by the Company's subsidiaries, subject to customary exceptions, and are secured by liens on substantially all assets of the Company, P10 Intermediate and the Company's guarantor subsidiaries, subject to customary exceptions.

The Amended and Restated Credit Agreement contains affirmative and negative covenants typical of such financing transactions, and specific financial covenants which require P10 to maintain a minimum leverage ratio. As of March 31, 2025, P10 was in compliance with its financial and other covenants required under the facility. For the three months ended March 31, 2025 and March 31, 2024, $6.0 million and $5.4 million of interest expense was incurred, respectively.

Debt Payable

Future principal maturities of debt as of March 31, 2025 are as follows:

 

2025

 

$

4,063

 

2026

 

 

16,250

 

2027

 

 

16,250

 

2028

 

 

325,437

 

 

 

$

362,000