v3.26.1
Note 5 - Long-term Debt
 3 Months Ended
Mar. 31, 2026
Notes to Financial Statements  
Debt Disclosure [Text Block]

NOTE 5—LONG-TERM DEBT

 

   

As of March 31, 2026

    

As of December 31, 2025

  
           

(unaudited)

                                  

(In thousands)

  

Principal

    

Deferred Financing Costs, net

    

Balance

    

Principal

    

Deferred Financing Costs, net

    

Balance

  

7.00% Notes

   $ 675,000     $ (11,783 )   $ 663,217     $ 675,000       (12,329 )   $ 662,671  

Other

     -       -       -       3       -       3  

Total long-term debt

     675,000       (11,783 )     663,217       675,003       (12,329 )     662,674  

Less current portion

     -       -       -       (3 )     -       (3 )

Total long-term debt, non-current

   $ 675,000     $ (11,783 )   $ 663,217     $ 675,000     $ (12,329 )   $ 662,671  

 

For the three months ended March 31, 2026 and 2025, $0.7 million and $0.9 million, respectively, of deferred financing costs were charged to interest expense. 

 

7.00% Notes

 

The Company has $675.0 million aggregate principal 7.00% Notes (the “7.00% Notes”) outstanding. The 7.00% Notes bear interest at a rate of 7.00% per year, payable semiannually in arrears on  March 15 and  September 15 of each year. The 7.00% Notes will mature on  September 15, 2030, subject to earlier repurchase or redemption. The 7.00% Notes are senior secured obligations of the Company and are guaranteed on a senior secured basis by the Company and certain of the Company’s subsidiaries (collectively, the “Guarantors”) and secured by first-priority pari passu liens, subject to permitted liens and certain exceptions, on substantially all the assets of the Company and the Guarantors. The 7.00% Notes  may be redeemed by the Company, at set redemption prices and premiums, plus accrued and unpaid interest, if any.

 

Revolving Credit Facility 

 

The Company has a senior secured revolving credit facility (the “Revolving Credit Facility”), with an aggregate principal commitment amount of $60.0 million, which matures  August 2030, with a letter of credit sub-facility of $15.0 million aggregate principal amount. The obligations under the Revolving Credit Facility are guaranteed by the Company and the Guarantors and are secured by first-priority pari passu liens, subject to permitted liens and certain exceptions, on substantially all the assets of the Company and the Guarantors. Borrowings under the Revolving Credit Facility, if any, will bear interest at a rate per annum equal to, at the Company’s option, an adjusted Secured Overnight Financing Rate (“SOFR”) plus a spread or a base rate plus a spread. The Company is required to pay a 0.5% quarterly commitment fee on undrawn amounts under the Revolving Credit Facility. As of  March 31, 2026, the Company had no borrowings under the Revolving Credit Facility.

 

Covenants

 

The Company’s 7.00% Notes and Revolving Credit Facility contain covenants that include, among others, limits on additional indebtedness and making certain dividend payments, distributions, investments and other restricted payments. These covenants are subject to a number of important exceptions and qualifications set forth in the 7.00% Notes and the Revolving Credit Facility. The Company was in compliance with its covenants in effect as of March 31, 2026.