v3.26.1
DEBT
 3 Months Ended
Mar. 31, 2026
Debt Disclosure [Abstract]  
DEBT

6. DEBT

 

Long-term debt

 

The Company’s long-term debt obligations consist of the following (in US$ thousands):

 

   March 31, 2026   December 31, 2025 
         
Secured Term Loan  $241,875   $258,000 
Secured Revolving Credit Facility   -    - 
Less: unamortized debt issuance costs   (1,833)   (2,122)
Total loans and borrowings   240,042    255,878 
Less: current installments   (64,500)   (64,500)
Long-term debt, net of unamortized debt issuance costs and excluding current installments  $175,542   $191,378 

 

2021 Secured Facilities Agreement

 

On November 4, 2021, the Company entered into an $860 million Secured Facilities Agreement (the “2021 Secured Facilities Agreement”). At inception, the 2021 Secured Facilities Agreement consisted of a $430 million term loan due by November 4, 2027 (the “Term Loan” or “Secured Term Loan”), a $80.0 million revolving credit facility due by November 4, 2025 (“RCF” or “Secured Revolving Credit Facility”), and a $350 million working capital facility that renews annually or bi-annually by mutual agreement between the lenders and the Company. The Secured Revolving Credit Facility was extended from November 4, 2025, to February 4, 2026, by mutual agreement of the Company and its lenders. Following February 4, 2026, the Company did not extend its Secured Revolving Credit Facility, as operating cash flow, together with available cash and cash equivalents, is sufficient to support working capital, capital expenditures, and debt repayment obligations. The Company is currently working with its lenders to refinance and extend the 2021 Secured Facilities Agreement.

 

 

Borrowings under the Term Loan incur, and prior borrowings under the RCF incurred, interest based on the secured overnight financing rate (“SOFR”) for U.S. dollar-denominated borrowings or the Saudi Arabian Interbank Offered Rate (“SAIBOR”) for Saudi Arabia Riyal borrowings plus 2.6% to 3.0% per annum, varying based on the Company’s Net Debt / EBITDA ratio as defined in the 2021 Secured Facilities Agreement. As of March 31, 2026, and December 31, 2025, this resulted in interest rates of 6.52% and 7.13%, respectively, for U.S. dollar-denominated borrowings, and interest rates of 7.44% and 7.61%, respectively, for Saudi Arabian Riyal borrowings. As of March 31, 2026, and December 31, 2025, the Company had drawn $241.9 million and $258.0 million, respectively, of the Term Loan, and $0.0 (zero) million and $0.0 (zero) million, respectively, of the RCF. Additionally, as of March 31, 2026, and December 31, 2025, the Company had $0.0 (zero) million and $59.2 million, respectively, available to be drawn under the RCF.

 

The 2021 Secured Facilities Agreement also includes a working capital facility of $259 million and $325 million as of March 31, 2026, and December 31, 2025, respectively, for issuance of letters of guarantee, letters of credit and refinancing letters of credit into debt over a period of no more than two years, which carries an interest rate equal to SOFR for U.S. dollar-denominated borrowings, or SAIBOR for Saudi Arabia Riyal borrowings, for the applicable interest period, plus a margin of 1.25% to 1.5% per annum. The working capital facility decreased by $66.0 million during the quarter ended March 31, 2026, due to the scheduled expiration of one tranche of availability within the lender syndicate. As of March 31, 2026, and December 31, 2025, this resulted in interest rates of 6.52% and 7.13%, respectively, for U.S. dollar-denominated borrowings, and interest rates of 7.44% and 8.18%, respectively, for Saudi Arabian Riyal borrowings. The working capital facility requires the payment of a commitment fee each quarter. The commitment fee is computed at the rate of 0.3125% (25% of the margin) on the facility lender’s available commitment for the relevant quarter. As of March 31, 2026, and December 31, 2025, the Company had utilized $241.7 million and $243.8 million, respectively, under this working capital facility and the balance of $17.3 million and $81.2 million, respectively, was available to the Company.

 

The 2021 Secured Facilities Agreement includes covenants that specify maximum leverage (Net Debt / EBITDA) up to 3.50, minimum debt service coverage ratio (Cash Flow / Debt Service) of at least 1.25, and interest coverage (EBITDA / Interest) of at least 4.00. As of March 31, 2026, and December 31, 2025, the Company was in compliance with all financial and non-financial covenants under the 2021 Secured Facilities Agreement.

 

Short-term debt

 

The Company’s short-term debt obligations consist of the following (in US$ thousands):

 

   March 31, 2026   December 31, 2025 
         
Other short-term borrowings from working capital facilities  $47,353   $54,250 
Less: unamortized debt issuance costs   -   - 
Short-term debt, excluding current installments of long-term debt  $47,353   $54,250 

 

Short-term borrowings primarily consist of financing for capital equipment and inventory purchases.

 

Other debt information

 

Scheduled principal payments of long-term debt for periods subsequent to March 31, 2026, are as follows (in US$ thousands):

 

      
2026  $48,375 
2027   193,500 
2028   - 
2029   - 
2030   - 
Total long-term debt  $241,875