v3.25.2
Debt
 6 Months Ended
Jun. 30, 2025
Debt Disclosure [Abstract]  
Debt DEBT
The Company’s borrowings consist of the following:
  As of
(in thousands)MaturitiesStated Interest RateEffective Interest RateJune 30,
2025		December 31,
2024
Unsecured notes (1)
20265.75%5.75%$399,341 $398,985 
Revolving credit facility2027
5.59% - 7.88%
5.92%143,618 62,836 
Term loan (2)
2027
6.16% - 6.21%
6.26%136,457 140,099 
Real estate term loan (3)
2028
6.06% - 6.09%
6.14%68,922 70,795 
Capital term loan (4)
2028
6.81% - 6.84%
6.89%53,607 56,770 
Other indebtedness2025 - 2027
5.50% - 8.00%
14,430 18,707 
Total Debt816,375 748,192 
Less: current portion(502,124)(26,577)
Total Long-Term Debt$314,251 $721,615 
____________
(1)     The carrying value is net of $0.7 million and $1.0 million of unamortized debt issuance costs as of June 30, 2025 and December 31, 2024, respectively.
(2)     The carrying value is net of $0.4 million and $0.5 million of unamortized debt issuance costs as of June 30, 2025 and December 31, 2024, respectively.
(3)     The carrying value is net of $0.1 million of unamortized debt issuance costs as of June 30, 2025 and December 31, 2024.
(4)     The carrying value is net of $0.6 million of unamortized debt issuance costs as of June 30, 2025 and December 31, 2024.
At June 30, 2025 and December 31, 2024, the fair value of the Company’s 5.75% unsecured notes, based on quoted market prices (Level 2 fair value assessment), totaled $400.7 million and $398.9 million, respectively.
The outstanding balance on the Company’s $300 million unsecured revolving credit facility was $143.6 million as of June 30, 2025, consisting of U.S. dollar borrowings of $75 million with interest payable at SOFR plus 1.375% or prime rate plus 0.375%, and British Pound borrowings of £50 million with interest payable at Daily Sterling Overnight Index Average (SONIA) plus 1.375%.
The fair value of the Company’s other debt, which is based on Level 2 inputs, approximates its carrying value as of June 30, 2025 and December 31, 2024. The Company is in compliance with all financial covenants of the revolving credit facility and term loans as of June 30, 2025.
During the three months ended June 30, 2025 and 2024, the Company had average borrowings outstanding of approximately $886.4 million and $841.8 million, respectively, at average annual interest rates of approximately 6.0% and 6.4%, respectively. During the three months ended June 30, 2025 and 2024, the Company incurred net interest expense of $15.8 million and $89.3 million, respectively.
During the six months ended June 30, 2025 and 2024, the Company had average borrowings outstanding of approximately $828.7 million and $826.9 million, respectively, at average annual interest rates of approximately 6.0% and 6.4%, respectively. During the six months ended June 30, 2025 and 2024, the Company incurred net interest expense of $95.6 million and $106.4 million, respectively.
During the three and six months ended June 30, 2025, the Company recorded interest expense of $1.2 million and $67.6 million, respectively, to adjust the fair value of the mandatorily redeemable noncontrolling interest. During the three and six months ended June 30, 2024, the Company recorded interest expense of $73.5 million and $75.4 million, respectively, to adjust the fair value of the mandatorily redeemable noncontrolling interest. The fair value of the mandatorily redeemable noncontrolling interest was based on the fair value of the underlying subsidiaries owned by GHC One and GHC Two, after taking into account any debt and other noncontrolling interests of its subsidiary investments. The fair value of the owned subsidiaries is determined by reference to either a discounted cash flow or EBITDA multiple, which approximates fair value (Level 3 fair value assessment) (See Note 2 and 8).