v3.25.2
Financing
6 Months Ended
Jun. 30, 2025
Debt Disclosure [Abstract]  
Financing

7. FINANCING

 

 

June 30,
2025

 

 

December 31,
2024

 

7.125% senior notes due July 2028

 

$

641.6

 

 

$

641.6

 

5.00% senior notes due March 2027

 

 

750.0

 

 

 

750.0

 

8.25% senior notes due March 2027

 

 

866.9

 

 

 

866.9

 

9.50% senior secured notes due December 2031

 

 

1,000.0

 

 

 

1,000.0

 

4.75% senior secured notes due September 2029

 

 

951.0

 

 

 

1,250.0

 

6.00% senior secured notes due March 2026

 

 

 

 

 

1,500.0

 

Senior secured term loan due December 2029

 

 

3,150.0

 

 

 

3,150.0

 

Senior secured revolving credit facility

 

 

 

 

 

200.0

 

Total principal amount of debt

 

 

7,359.5

 

 

 

9,358.5

 

Less: Original issue discount, net of amortization

 

 

(56.4

)

 

 

(60.5

)

Less: Debt issuance costs, net of amortization

 

 

(53.4

)

 

 

(59.6

)

Less: Current portion

 

 

 

 

 

 

Total long-term debt

 

$

7,249.7

 

 

$

9,238.4

 

In January 2025, the Company used the proceeds from the sale of the OWN segment and DAS business unit to pay fees and expenses associated with the transaction and to repay the outstanding amount of $250.0 million under the Company’s asset-based revolving credit facility (the Revolving Credit Facility). In addition, in February 2025, the Company repurchased $299.0 million in aggregate principal amount of the 4.75% senior secured notes due September 2029 (the 2029 Secured Notes) and repurchased in full the $1,500.0 million outstanding amount of the 6.00% senior secured notes due March 2026 (the 2026 Secured Notes) with the proceeds from the sale. Following the repurchases, $951.0 million in aggregate principal amount of the 2029 Secured Notes remain outstanding, and the indenture governing the 2026 Secured Notes was satisfied and discharged. Following the consummation of the repurchases in February 2025, the conditions precedent were met for a 25 basis point reduction in the applicable margin on the senior secured term loan due December 2029 (the 2029 Term Loan). In connection with the repayment of all outstanding amounts under the Revolving Credit Facility in January 2025, the committed amount thereunder was reduced to $750.0 million, subject to borrowing base limitations.

During the six months ended June 30, 2025, the Company incurred $6.8 million of additional debt issuance costs related to its refinancing completed in December 2024. Debt issuance costs of $5.7 million were recorded as a reduction of the carrying amount of the debt, and $1.1 million were included in other income (expense), net on the Condensed Consolidated Statements of Operations for the six months ended June 30, 2025. For the six months ended June 30, 2025, the Company wrote-off $7.3 million of existing debt issuance costs associated with the repurchases of the 2029 Secured Notes and the 2026 Secured Notes, and the reduction in the borrowing capacity under the Revolving Credit Facility, as discussed above, which were included as interest expense in the Condensed Consolidated Statements of Operations.

Senior Secured Credit Facilities

No portion of the 2029 Term Loan was reflected as a current portion of long-term debt as of June 30, 2025 related to the potentially required excess cash flow payment because no such payment is expected to be required. There is no excess cash flow payment required in 2025 related to 2024.

During the six months ended June 30, 2025, the Company borrowed $50.0 million and repaid $250.0 million under the Revolving Credit Facility and had availability of $419.7 million, after giving effect to borrowing base limitations and outstanding letters of credit.

Other Matters

The following table summarizes scheduled maturities of long-term debt as of June 30, 2025:

 

 

Remainder of 2025

 

 

2026

 

 

2027

 

 

2028

 

 

2029

 

 

Thereafter

 

Scheduled maturities of long-term debt

 

$

 

 

$

 

 

$

1,616.9

 

 

$

641.6

 

 

$

4,101.0

 

 

$

1,000.0

 

 

The Company’s non-guarantor subsidiaries held approximately $1,414 million, or 18%, of total assets and $335 million, or 4%, of total liabilities as of June 30, 2025 and accounted for approximately $141 million, or 10%, and $290 million, or 11%, of net sales for the three and six months ended June 30, 2025, respectively. During the three months ended June 30, 2025, the Company implemented several changes to its non-guarantor subsidiary structure, which impacted the amount of total assets, liabilities and net sales attributable to these subsidiaries. All amounts presented exclude intercompany balances.

The weighted average effective interest rate on outstanding borrowings, including the impact of the interest rate swap contracts and the amortization of debt issuance costs and original issue discount, was 8.57% and 8.09% as of June 30, 2025 and December 31, 2024, respectively.