v3.25.2
Debt Obligations
 6 Months Ended
Jun. 30, 2025
Debt Disclosure [Abstract]  
Debt Obligations Debt Obligations
Outstanding debt obligations consisted of the following:
June 30, 2025December 31, 2024
2024 Credit Agreement
Term facility - matures May 16, 2031, interest rate of 9.08% and 9.11% at June 30, 2025 and December 31, 2024, respectively
$935,537 $945,537 
Revolving credit facility - $70.0 million line matures May 16, 2029, interest rate of 8.58% and 8.61% at June 30, 2025 and December 31, 2024, respectively
— — 
Total debt obligations935,537 945,537 
Less: current portion of long-term debt(4,254)(9,503)
Less: unamortized debt discounts and deferred financing costs(14,266)(15,146)
Long-term debt, net$917,017 $920,888 
Interest Expense and Amortization of Deferred Loan Costs and Discounts
Deferred financing costs and debt discounts are amortized using the effective interest method over the remaining term of the respective debt and are recorded as a component of interest expense. Unamortized deferred financing costs and debt discounts are included in long-term debt on the Company's Unaudited Consolidated Balance Sheets.
Interest expense for outstanding debt, including fees for undrawn amounts and amortization of deferred financing costs and debt discounts was as follows:
Three Months Ended June 30,Six Months Ended June 30,
(in thousands)2025202420252024
Interest expense(1),(2)
$23,054 $21,710 $46,230 $42,590 
(1)Included in interest expense is $1.0 million and $2.0 million related to the accretion of deferred consideration from acquisitions for the three and six months ended June 30, 2025, respectively, and $1.2 million and $2.2 million for the three and six months ended June 30, 2024, respectively.
(2)Interest expense included amortization of deferred financing costs and debt discounts of $0.5 million and $0.9 million for the three and six months ended June 30, 2025, respectively, and $0.8 million and $1.8 million for the three and six months ended June 30, 2024, respectively.
Debt Covenants
The 2024 Credit Agreement contains representations and warranties, financial and collateral requirements, mandatory payment events, events of default and affirmative and negative covenants, including without limitation, covenants that restrict among other things, the ability to create liens, pay dividends or distribute assets from the loan parties to the Company, merge or consolidate, dispose of assets, incur additional indebtedness, make certain investments or acquisitions, enter into certain transactions (including with affiliates) and to enter into certain leases.
If the aggregate principal amount of outstanding revolving loans and letters of credit under the 2024 Credit Agreement exceeds 35% of the total revolving credit facility thereunder, the Company is required to comply with certain restrictions on its Total Net Leverage Ratio. If applicable, the maximum permitted Total Net Leverage Ratio is: 1) 6.90:1.00 at each fiscal quarter ended September 30, 2024 through December 31, 2025; 2) 6.40:1.00 at each fiscal quarter ended March 31, 2026 and each fiscal quarter thereafter. As of June 30, 2025, the Company was in compliance with the covenants in the 2024 Credit Agreement.