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

Note 11. Debt

Debt consisted of the following:

 

 

Maturities

 

Effective
Interest
Rates

 

March 31, 2026

 

 

December 31, 2025

 

Notes Payable

 

2031

 

8.0%

 

$

 

836

 

 

$

836

 

2025 Term Loan

 

2032

 

6.5%

 

 

 

2,630,126

 

 

 

2,636,755

 

2025 DDTL

 

2032

 

6.1%

 

 

 

48,758

 

 

 

23,880

 

Total debt

 

 

 

 

 

 

 

2,679,720

 

 

 

2,661,471

 

Less: Unamortized deferred financing costs

 

 

 

 

 

 

 

(27,225

)

 

 

(28,159

)

Less: Current maturities

 

 

 

 

 

 

 

(27,103

)

 

 

(26,853

)

Total Debt, noncurrent

 

 

 

 

 

$

 

2,625,392

 

 

$

2,606,459

 

 

The following table of future payments reflects the contractual annual amounts due on all outstanding debt:

 

Year Ending December 31,

 

Amount

 

Remaining portion of 2026

 

$

 

20,324

 

2027

 

 

 

27,119

 

2028

 

 

 

27,130

 

2029

 

 

 

27,141

 

2030

 

 

 

27,154

 

Thereafter

 

 

 

2,550,852

 

Total expected future payments

 

$

 

2,679,720

 

 

2025 Credit Agreement

On February 26, 2025, the Company entered into a credit agreement (the “2025 Credit Agreement”) with the Arxis Businesses as co-borrowers. The 2025 Credit Agreement includes a senior secured term loan of $2,650,000 with a maturity date of February 26, 2032 (the “2025 Term Loan”), a senior secured revolving credit facility with a borrowing capacity of $400,000 with a maturity date of February 26, 2030 (the “2025 Revolver”), and a delayed draw term loan with commitments of $250,000 with a maturity date of February 26, 2032 (the “2025 DDTL”). The 2025 Credit Agreement includes a $65,000 letter of credit sublimit and a $100,000 swingline sublimit. The Company capitalized debt issuance costs of $38,907 in connection with the issuance. The Company may draw on the 2025 DDTL until February 26, 2027.

The proceeds from the 2025 Term Loan were used to repay all outstanding instruments under the Company’s prior credit facilities. As a result of the extinguishment of such debt, the Company recorded a loss on extinguishment of $15,535, which is included within Interest expense, net in the Condensed Combined Statements of Operations for the three months ended March 31, 2025.

As of March 31, 2026, there was no outstanding balance on the 2025 Revolver and $3,716 letters of credit were utilized, resulting in an available borrowing capacity of $396,284 on the 2025 Revolver. As of March 31, 2026, the Company had borrowed $49,000 against the 2025 DDTL. As of December 31, 2025, there was no outstanding balance on the 2025 Revolver and the Company had borrowed $24,000 against the 2025 DDTL.

Commitment Fees

The Company is subject to commitment fees, payable quarterly in arrears, on the unused portion of its revolving credit commitments and the undrawn capacity on its delayed draw term loan. Commitment fees were not material for the three months ended March 31, 2026 and 2025, and are included within Interest expense, net in the Condensed Combined Statements of Operations.

Interest Rate Hedges

In April 2025, the Company entered into interest rate collar arrangements as an economic hedge to a portion of the Company’s outstanding debt. The collars have a cap rate of 5.0% and floor rates ranging from 1.9% to 2.5%. As of March 31, 2026 and December 31, 2025, the notional amount of the interest rate collars was $1,788,000 and $1,791,000, respectively. The interest rate collars terminate in December 2028.

The fair value as of March 31, 2026 and December 31, 2025 was $1,749 and $2,474, respectively, which is included within Other long-term liabilities on the Condensed Combined Balance Sheets. For the three months ended March 31, 2026, the Company recorded a gain of $725, due to the change in fair value of the interest rate collars, which is included within Interest expense, net in the Condensed Combined Statements of Operations.