v3.25.2
Long-term Debt
 6 Months Ended
Jun. 30, 2025
Debt Disclosure [Abstract]  
Long-term Debt Long-term Debt
The following table provides a summary of our debt as of the periods indicated:
June 30,
2025		December 31,
2024
(in thousands)
Term loan due 2027$136,875 $140,625 
Revolving credit facility— — 
Less: unamortized deferred financing costs(735)(908)
Total debt136,140 139,717 
Less: current portion of debt(7,500)(7,500)
Total long-term debt, net of deferred financing costs$128,640 $132,217 
Credit Agreement—Term Loan due 2027 and Revolving Credit Facility
On September 9, 2022, we entered into a First Amendment to our existing Credit Agreement (the “First Amendment”) with Wells Fargo Bank, N.A., as the administrative agent, and the financial institutions party thereto, as the lenders. The First Amendment provided senior secured credit facilities in an aggregate principal amount of $300 million, which (i) established a term loan due 2027 with a principal amount of $150 million (the “Term Loan due 2027”), and (ii) increased the borrowing capacity on the existing revolving credit facility to $150 million (the “Revolving Credit Facility”), both scheduled to mature on September 9, 2027 (collectively, the “Credit Agreement”).
Borrowings under the Credit Agreement bear interest at a rate equal to either (i) an Alternate Base rate (“ABR”) or (ii) the term Secured Overnight Financing Rate (“SOFR”) plus 0.10% (“Adjusted SOFR”) plus a spread that is based upon our total net leverage ratio. The spread ranges from 0.625% to 1.375% per annum for ABR loans and 1.625% to 2.375% per annum for Adjusted SOFR loans. With respect to the ABR loans, interest is payable at the end of each calendar quarter. With respect to the Adjusted SOFR loans, interest is payable at the end of the selected interest period (at least quarterly). Additionally, there is an unused commitment fee payable at the end of each quarter at a rate per annum ranging from 0.15% to 0.225% based on the average daily unused portion of the Revolving Credit Facility and other customary letter of credit fees. Pursuant to the Credit Agreement, the interest rate spread and commitment fees increase or decrease in increments as the Funded Secured Debt/EBITDA ratio increases or decreases.
As of June 30, 2025, the Term Loan due 2027 and the Revolving Credit Facility were both subject to an Adjusted SOFR rate of 4.396% plus a spread of 2.125% per annum. Commitment fees were accrued at 0.200% under the Revolving Credit Facility’s unused commitment balance of $150 million as of June 30, 2025. As of June 30, 2025 and December 31, 2024, the effective interest rate on the outstanding borrowings was 6.767% and 7.050%, respectively.
Unamortized deferred financing costs related to the Term Loan due 2027 and the Revolving Credit Facility were $0.7 million and $0.2 million, respectively, as of June 30, 2025.
The obligations under the Credit Agreement are guaranteed by our U.S. subsidiaries and are secured by substantially all of our assets and our U.S. subsidiaries, subject to customary exceptions. The Credit Agreement contains a maximum total net leverage ratio financial covenant and a minimum fixed charge coverage ratio financial covenant, which are tested quarterly. The maximum total net leverage ratio is 3.0:1 and the minimum fixed charge coverage ratio is 1.25:1. As of June 30, 2025, we were in compliance with all required covenants under the Credit Agreement.