v3.26.1
DEBT
 3 Months Ended
Mar. 31, 2026
Debt Disclosure [Abstract]  
DEBT DEBT
As of March 31, 2026 and December 31, 2025, our total long-term debt and finance lease obligations are summarized as follows (in thousands):
March 31, 2026December 31, 2025
(unaudited)
2022 ABL Credit Facility$65,986 $58,786 
First Lien Term Loan1
166,142 166,241 
2025 Second Lien Term Loan1
64,393 62,063 
Equipment Financing Loans1,362 1,436 
Total 297,883 288,526 
Finance lease obligations8,617 8,675 
Total long-term debt and finance lease obligations306,500 297,201 
Current portion of long-term debt and finance lease obligations(3,884)(3,858)
Total long-term debt and finance lease obligations, less current portion$302,616 $293,343 
1    Comprised of principal amount outstanding, less unamortized debt issuance costs. See below for additional information.

2022 ABL Credit Agreement
On February 11, 2022, we entered into a credit agreement, with the lender parties thereto, and Eclipse Business Capital, LLC, a Delaware limited liability company, as agent (“Eclipse”) (such agreement, as amended by Amendment No.1 dated as of May 6, 2022, Amendment No.2 dated as of November 1, 2022, Amendment No.3 dated as of June 16, 2023, Amendment No.4 dated as of March 6, 2024, Amendment No.5 dated as of September 30, 2024, Amendment No.6 dated as of March 12, 2025 and Amendment No.7 dated as of September 11, 2025, the “2022 ABL Credit Agreement”).

Available funding commitments to us under the 2022 ABL Credit Agreement, subject to certain conditions, include a revolving credit line in an amount of up to $150.0 million to be provided by certain affiliates of Eclipse, with a $35.0 million sublimit for swingline borrowings, and a $26.0 million sublimit for issuances of letters of credit (the “Revolving Credit Loans”).

The terms of the Revolving Credit Loans are described in the table below (dollar amounts are presented in thousands):
Maturity date10/2/2028
Interest rateSOFR + applicable margin (or base rate + applicable margin)
Actual interest rate:
3/31/20267.28%
3/31/20258.69%
Interest paymentsmonthly
Cash paid for interest
YTD 3/31/2026$973
YTD 3/31/2025$1,761
Principal balance
3/31/2026$65,986
12/31/2025$58,786
Unamortized balance of deferred financing cost
3/31/2026$902
12/31/2025$991
Available amount at 3/31/2026$30,495

The 2022 ABL Credit Agreement contains customary conditions to borrowings and covenants, as described in the 2022 ABL Credit Agreement. As of March 31, 2026, we were in compliance with the covenants.

As of March 31, 2026, $9.5 million in letters of credit were issued under the 2022 ABL Credit Agreement. Such amounts remain undrawn and are off-balance sheet.

First Lien Term Loan Agreement

On March 12, 2025, we entered into a First Lien Term Loan Credit Agreement (such agreement, as amended by Amendment No.1 dated as of September 11, 2025, the “First Lien Term Loan Agreement”) with the lenders party thereto and HPS Investment Partners, LLC. Available funding commitments include a $225.0 million senior secured first lien term loan (the “First Lien Term Loan”) consisting of a $175.0 million initial term loan tranche (the “Initial First Lien Term Loans”) and a $50.0 million delayed draw term loan tranche (the “First Lien Delayed Draw Term Loans”), which is available to be drawn from March 12, 2025 to June 30, 2027, subject to satisfying certain conditions.

The terms of the Initial First Lien Term Loans are described in the table below (dollar amounts are presented in thousands):
Maturity date3/12/2030
Stated interest rateSOFR+applicable margin (or base rate+applicable margin)
Principal payments
$438 quarterly
Effective interest rate
3/31/202611.21%
3/31/202512.64%
Actual interest rate
3/31/20269.42%
3/31/202510.83%
Interest payments
variable1
Cash paid for interest
YTD 3/31/2026$1,494
YTD 3/31/2025$—
Balances at 3/31/2026
Principal balance $173,250
Unamortized balance of debt discount and issuance cost1
$(7,108)
Net carrying balance$166,142
Balances at 12/31/2025
Principal balance$173,688
Unamortized balance of debt discount and issuance cost2
$(7,447)
Net carrying balance$166,241
1    Interest payment dates may be monthly or quarterly based on the Company’s election (subject to availability), adjusted to the nearest business day.
The First Lien Term Loan Agreement contains certain conditions to borrowings, events of default and affirmative and negative covenants as described in the First Lien Term Loan Agreement. As of March 31, 2026, we were in compliance with the covenants.
A&R Term Loan Credit Agreement / Second A&R Second Lien Term Loan Credit Agreement
On March 12, 2025, we entered into a Second Amended and Restated Second Lien Term Loan Credit Agreement with the lenders party thereto and Cantor Fitzgerald Securities, as Agent (as amended by Amendment No.1 dated as of September 11, 2025, the “Second A&R Second Lien Term Loan Agreement”), which amended and restated the existing Amended and Restated Term Loan Credit Agreement, dated June 16, 2023.
Available funding commitments to the Company under the Second A&R Second Lien Term Loan Agreement, subject to certain conditions, included a $107.4 million second lien term loan (the “Second Lien Term Loans”), initially provided by Corre Partners Management, LLC and certain of its affiliates (“Corre and affiliates”), consisting of a $97.4 million term loan tranche (the “2025 Second Lien Term Loans”) and a $10.0 million delayed draw term loan tranche (the “Second Lien Delayed Draw Term Loans”) which was available to be drawn from March 12, 2025, until April 15, 2026, subject to satisfying certain conditions.

The amount currently outstanding under the Second A&R Second Lien Term Loan Agreement is a $65.8 million second lien term loan, including certain interest payments paid in kind. As of April 15, 2026, the availability period for the Second Lien Delayed Draw Term Loans expired. No amounts were drawn under the Second Lien Delayed Draw Term Loans prior to the expiration date.

The terms of the 2025 Second Lien Term Loans are described in the table below (dollar amounts are presented in thousands):
Maturity date6/10/2030
Principal payments
quarterly1
Effective interest rate
3/31/202616.32%
3/31/202516.01%
Actual interest rate
3/31/202613.50%
3/31/202513.50%
Interest payments
quarterly 2
Cash paid for interest
YTD 3/31/2026$—
YTD 3/31/2025$—
PIK interest added to principal balance
YTD 3/31/2026$2,120
YTD 3/31/2025$—
Balances at 3/31/2026
Principal balance$65,817
Unamortized balance of debt issuance cost$(1,424)
Net carrying balance$64,393
Balances at 12/31/2025
Principal balance$63,696
Unamortized balance of debt issuance cost$(1,633)
Net carrying balance$62,063
1    Principal payments represent a percentage (ranges between 0% and 0.25% based on the First Lien Net Leverage Ratio) of the outstanding principal balance. As of March 31, 2026 we are not making quarterly principal payments.
2    Interest payments are based on the First Lien Net Leverage Ratio and may be paid in cash or PIK. As of March 31, 2026, all interest is PIK.
The Second A&R Second Lien Term Loan Agreement contains certain conditions to borrowings, events of default and affirmative and negative covenants and a financial covenant as described in the agreement. As of March 31, 2026, we were in compliance with the covenants.
Equipment Financing Loans
Equipment financing loans consist of secured borrowings used to acquire machinery and equipment (including office equipment). Under some of the arrangements, the lender pays the equipment vendor directly on behalf of the Company; as a result, no cash proceeds are received by the Company. The loans are secured by the financed equipment and are repaid over fixed terms through scheduled installments. The related assets are recorded in property, plant, and equipment, net of accumulated depreciation. As of March 31, 2026 and December 31, 2025, the outstanding balance of equipment financing loans was $1.4 million.
Fair Value of Debt
The fair value of our debt obligations is representative of the carrying value based upon the respective interest rate terms and management’s opinion that the current rates available to us with the same maturity and security structure are equivalent to that of the debt obligations.
1970 Group Substitute Insurance Reimbursement Facility
As of March 31, 2026, the Company maintains $19.1 million of letters of credit outstanding under its Substitute Insurance Collateral Facility Program Agreement (the “Collateral Facility Agreement”) with 1970 Group Originator, Inc. The collateral facility agreement remains off-balance sheet unless drawn upon. Deferred facility fees are amortized to interest expense; the unamortized balances as of March 31, 2026 and December 31, 2025, were $1.0 million and $1.5 million, respectively. For additional details, refer to Note 11 in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.