v3.26.1
Debt Obligations
 3 Months Ended
Mar. 31, 2026
Debt Disclosure [Abstract]  
Debt Obligations Debt Obligations
Outstanding debt obligations consisted of the following:
(in thousands)March 31, 2026December 31, 2025
2024 Credit Agreement
Term facility - matures July 31, 2032, interest rate of 7.42% and 7.47% at March 31, 2026 and December 31, 2025, respectively
$1,020,000 $1,020,000 
Revolving credit facility - $100.0 million line matures July 31, 2030, interest rate of 7.17% and 7.22% at March 31, 2026 and December 31, 2025, respectively
— — 
Residual Finance Credit Facility
Term facility - matures August 18, 2031, interest rate of 9.93% and 9.98% at March 31, 2026 and December 31, 2025, respectively
42,003 35,394 
Total debt obligations1,062,003 1,055,394 
Less: current portion of long-term debt(525)— 
Less: unamortized debt discounts and deferred financing costs(15,569)(16,036)
Long-term debt, net$1,045,909 $1,039,358 
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 March 31,
(in thousands)20262025
Interest expense(1)(2)
$21,016 $23,176 
(1)Included in interest expense is $0.4 million and $1.0 million related to the accretion of deferred consideration from acquisitions for the three months ended March 31, 2026 and 2025, respectively.
(2)Interest expense included amortization of deferred financing costs and debt discounts of $0.5 million and $0.4 million for the three months ended March 31, 2026 and 2025, 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, 2025 through March 31, 2026; 2) 6.40:1.00 at each fiscal quarter ended June 30, 2026 and each fiscal quarter thereafter.
The Residual Finance credit facility contains customary 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, and enter into certain transactions (including with affiliates).
The Residual Finance credit facility requires the Company to comply with certain restrictions including minimum liquidity of $2.0 million, minimum tangible net worth of $5.0 million, maximum default ratio of 2.5%, maximum delinquency ratio of 5.0%, and a minimum excess spread ratio of 1.00 to 1.00.