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

NOTE 8. DEBT

 

8.625% Senior Notes Due 2030

 

In March 2026, the Company entered into the First Supplemental Indenture to the Indenture dated September 12, 2025 pursuant to which the Company issued $50,000,000 aggregate principal amount of additional 8.625% Senior Notes due 2030 (the “New Notes”). The New Notes were issued at 100.25% of par value and resulted in net proceeds to the Company of $48,526,000 after deducting underwriting discounts, commissions and other unpaid offering expenses of $1,474,000. The New Notes, together with the 8.625% Senior Notes due 2030 issued in September 2025 (the “Existing Notes”) (together, the “2030 Notes”) are treated as a single series and have the same terms as the Existing Notes. The issuance costs and premium relating to the 2030 Notes were deferred and will be recognized to interest expense using the effective-interest method (9.35%) over the remaining term of the debt.

 

Interest expense totaled $5,992,000 for the three months ended March 31, 2026, and included the amortization of debt issuance costs and premium of $451,000.

 

A summary of the Company’s debt at March 31, 2026 and December 31, 2025 is as follows:

 

  

March 31,

2026

  

December 31,

2025

 
8.625% Senior Notes due September 2030  $300,000,000   $250,000,000 
Less: Unamortized debt issuance costs   (7,913,000)   (6,816,000)
Notes payable net  $292,087,000   $243,184,000 

 

 

At March 31, 2026, future minimum principal payments under the Company’s debt were as follows:

  

      
Remainder of 2026  $- 
2027   - 
2028   - 
2029   - 
2030   300,000,000 
Total minimum principal payments   300,000,000 
Less: unamortized issue costs and premium   (7,913,000)
Notes payable, net  $292,087,000