Long-Term Debt and Finance Leases

6 Months Ended

Jun. 30, 2025

Note 6. Long-Term Debt and Finance Leases

The following table summarizes the Company’s long-term debt and finance leases:


							December 31,
	June 30, 2025						2024
	Available
	borrowing		Effective		Outstanding		Outstanding
	capacity		interest rate(1)		balance		balance

	(in millions)
Long-term debt:
Super-priority Loans, net(2)		—	8.92	%		907.2		913.7
Revolving Credit Facility(3)		110.4	7.26	%		135.0		95.0
Total long-term debt	$	110.4				1,042.2		1,008.7
Other Financing						0.7		0.9
Finance lease obligations						24.7		24.9
Total long-term debt, finance lease obligations and other						1,067.6		1,034.5
Debt issuance costs, net(4)						(14.6)		(17.1)
Sub-total						1,053.0		1,017.4
Less current portion						(20.3)		(20.0)
Long-term portion					$	1,032.7	$	997.4

(1)	Represents the effective interest rate in effect for all borrowings outstanding as of June 30, 2025 pursuant to each debt instrument including the applicable margin. Excluding the impact of the derivative instruments the First Out Term Loan rate is 11.5% and the Second Out Term Loan rate is 7.5%.

(2)	At June 30, 2025 and December 31, 2024 includes $2.9 million and $3.3 million of net unamortized discounts, respectively.

(3)

Available borrowing capacity at June 30, 2025 represents $250.0 million of total availability less borrowings of $135.0 million on the Revolving Credit Facility and outstanding letters of credit of $4.6 million. Letters of credit are used in the ordinary course of business and are released when the respective contractual obligations have been fulfilled by the Company.

(4)	At June 30, 2025 and December 31, 2024 debt issuance costs include $12.5 million and $14.3 million related to Super Priority Loans and $2.1 million and $2.8 million related to the Revolving Credit Facility, respectively.

Credit Agreement

On October 11, 2024, the Company entered into a new super-priority credit agreement with certain lenders and Wilmington Savings Fund Society, FSB, as administrative agent and collateral agent (the “Priority Credit Agreement”). The Priority Credit Agreement provides for (i) a $200.0 million super-priority “first out” new money term loan (the “First Out TL”), (ii) a super-senior “second out” term loan (the “Second Out TL”) and (iii) a super-senior “second out” revolving credit facility (the “Second Out RCF” and together with the First Out TL and Second Out TL, the “Super-senior Facility”). The Super-senior Facility is guaranteed by the same guarantors and secured by the collateral package as the Company’s prior credit facility under the 2021 Credit Agreement and also contains certain collateral and guarantee enhancements.

The First Out TL matures in December 2028 (subject to a springing maturity of 91 days prior to the maturity of the Second Out RCF) and bears interest at a rate equal to SOFR plus 7.00%. In addition, the First Out TL contains capacity for an incremental $125 million which may not be incurred prior to the first anniversary of the closing date of the Priority Credit Agreement. The Second Out TL matures in December 2028, and bears interest at a rate equal to SOFR plus 3.00%. The Second Out RCF matures in December 2026 and initially bears interest at a rate equal to SOFR plus 2.75% (subject to adjustment based on a grid). Both the First Out TL and Second Out TL require amortization payments of 1.0% per annum.

The Super-senior Facility contains certain (a) restrictive covenants, including, but not limited to, restrictions on the entry into burdensome agreements, the prohibition of the incurrence of certain indebtedness, restrictions on the ability to make certain payments and to enter into certain merger, consolidation, asset sale and affiliate transactions, and (b) a springing

secured net leverage ratio for the benefit only of the Second Out RCF lenders. The Priority Credit Agreement also contains representations and warranties, affirmative covenants and events of default customary for an agreement of its type. As is customary, certain events of default could result in an acceleration of the Company’s obligations under the Priority Credit Agreement.

As of June 30, 2025, the Company was in compliance with all debt covenants.