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

Long-term debt, net consists of the following:
March 31,
2026		December 31,
2025
(In thousands)
10.500% First Lien Senior Secured Notes due 2030 (1, 3)
$60,600 $60,600 
7.625% Second Lien Secured Notes due 2031 (1, 3)
258,572 291,020 
7.375% Senior Secured Notes due February 2028 (2)
7,516 11,816 
Total principal outstanding on long-term debt326,688 363,436 
Less: Unamortized debt issuance costs(2,634)(2,868)
Add: Premium (3)
88,056 69,174 
Long-term debt, net$412,110 $429,742 
(1) The 2030 First Lien Notes and 2031 Second Lien Notes pay interest semiannually on April 1 and October 1 of each year in arrears.
(2) Subsequent to the effectiveness of the supplemental indenture on December 18, 2025, these notes are no longer secured. While these notes are styled as senior secured notes they are no longer secured by collateral. The 2028 Notes pay interest semiannually on February 1 and August 1 of each year in arrears.
(3) The 2030 First Lien Notes and 2031 Second Lien Notes are accounted for under Accounting Standards Codification No. 470-60, Troubled Debt Restructurings by Debtors.
From time to time, the Company may repurchase its debt securities in open market purchases. Under open authorizations by the Company's Board of Directors, repurchases of the outstanding debt may be made from time to time on the open market or in privately negotiated transactions in accordance with applicable laws and regulations. Repurchased debt is retired when repurchased. The timing and extent of any repurchases will depend upon prevailing market conditions, the trading price of the Company’s outstanding debt and other factors, and subject to restrictions under applicable law.
During the three months ended March 31, 2026, the Company repurchased approximately $32.4 million of its 2031 Second Lien Notes at a weighted average price of approximately 40.7% of par. As the 2031 Second Lien Notes are accounted under Accounting Standards Codification No. 470-60, Troubled Debt Restructurings by Debtors, no gain was recorded. Instead, the Company recorded an additional premium of $19.3 million, which is included in long-term debt, net on the Company's consolidated balance sheets.
The premium will result in interest expense being recognized at an effective interest rate of approximately 5.30% and 1.63% through the term of the 2030 First Lien Notes and 2031 Second Lien Notes. The difference in the contractual interest payments and interest expense will reduce the premium.
The fair value of the 2031 Second Lien Notes as of March 31, 2026 was $104.2 million. The fair value of the 2030 First Lien Notes as of March 31, 2026, was $60.8 million. The fair value of the 2030 First Lien Notes and 2031 Second Lien Notes, classified as a Level 2 instrument, were determined based on the trading values of this instrument in an inactive market as of the reporting date.
In April 2026, the Company repurchased approximately $23.5 million of its 2031 Second Lien Notes at a weighted average price of approximately 42.0% of par. Subsequent to the repurchases, the total outstanding balance of the 2031 Second Lien Notes is $235.1 million.
During the three months ended March 31, 2026, the Company repurchased approximately $4.3 million of its 2028 Notes at a weighted average price of approximately 51.0% of par, resulting in a net gain on retirement of debt of approximately $2.1 million, included in the unaudited consolidated statement of operations.
The Company’s effective interest rate for the 2028 Notes for the three months ended March 31, 2026 and 2025 were approximately 7.71% and 7.84%, respectively.
During the three months ended March 31, 2025, the Company repurchased approximately $28.2 million of its 2028 Notes at a weighted average price of approximately 58.0% of par, resulting in a net gain on retirement of debt of approximately $11.6 million, included in the unaudited consolidated statement of operations.
The 2028 Notes had a fair value of approximately $3.9 million as of March 31, 2026. The fair value of the 2028 Notes, classified as a Level 2 instrument, was determined based on the trading values of this instrument in an inactive market as of the reporting date.
After giving effect to all the repurchases of the outstanding debt, including subsequent events, the Company has approximately $19.9 million remaining under the current authorization by the Board of Directors on a cash basis.
Asset Backed Line of Credit
On December 18, 2025, the Company drew $10.0 million on the Current ABL Facility, which was repaid in the first quarter of 2026. In March 2026, the Company drew another $10.0 million on the Current ABL Facility with a six-month maturity at an interest rate of approximately 6.09%, which remains outstanding as of March 31, 2026. After giving effect to the $10.0 million drawdown and adjustments to account for the Borrowing Base, the Company's borrowing capacity was approximately $31.8 million as of March 31, 2026.
The Company further made two separate draws of $5.0 million each for a total of $10.0 million in the second quarter of 2026, payable at an interest rate of approximately 6.75% and 6.01%, respectively. After giving effect to the outstanding $10.0 million drawdown, the additional $10.0 million drawdown in the second quarter of 2026 and adjustments to account for the Borrowing Base, the Company's borrowing capacity was approximately $22.0 million.
Future Minimum Principal Payments
Future scheduled minimum principal payments of long-term debt as of March 31, 2026, are as follows:
Long-term debt
(In thousands)
Remainder of 2026$— 
2027— 
20287,516 
2029— 
203060,600 
2031258,572 
Total debt$326,688 
The deferred financing costs included in interest expense for all instruments, for each of the three months ended March 31, 2026 and March 31, 2025, were approximately $0.3 million and $0.5 million, respectively. The Company is in compliance with all of its debt covenants as of March 31, 2026 and expects to remain in compliance with all covenants over at least the next 12 months.