Debt |
6 Months Ended | ||||||||||||||||||||
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Jun. 30, 2025 | |||||||||||||||||||||
| Debt Disclosure [Abstract] | |||||||||||||||||||||
| Debt | Debt Our First Lien Credit Agreement (as amended from time to time, the "Credit Agreement") provides for (i) a $500.0 million term loan maturing on July 10, 2029 ("2024 Term Loan Facility"); and (ii) a revolving credit facility for up to $100.0 million (the "Revolving Credit Facility") of which $12.0 million matured on July 11, 2025 and the remaining $88.0 million will mature on April 10, 2029. As of June 30, 2025, there were no changes to the terms of our 2024 Term Loan Facility and Revolving Credit Facility as disclosed in Note 12 to our consolidated financial statements included in our 2024 10-K. The effective interest rate on our term loans for the three months ended June 30, 2025 and 2024 was 8.60% and 8.75%, respectively. The effective interest rate on our term loans for the six months ended June 30, 2025 and 2024 was 8.56% and 8.76%, respectively. We had no borrowings against the Revolving Credit Facility as of June 30, 2025 and December 31, 2024. We had outstanding letters of credit issued against the Revolving Credit Facility for $7.8 million and $8.3 million as of June 30, 2025 and December 31, 2024, respectively, which reduce our available borrowings under the Revolving Credit Facility. Our debt balance is as follows:
The estimated fair value of our debt approximated its carrying value as of June 30, 2025 and December 31, 2024, based on inputs categorized as Level 2 in the fair value hierarchy. Under the Credit Agreement, we are subject to a financial covenant requiring maintenance of a First Lien Net Leverage Ratio (as defined in the Credit Agreement) not to exceed 8.2 to 1.0 only in the event that the amounts outstanding under the Revolving Credit Facility exceed a specified percentage of commitments under the Revolving Credit Facility, and other nonfinancial covenants under the Credit Agreement. At June 30, 2025, we were in compliance with our covenants under the Credit Agreement.
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