v3.26.1
Derivative Financial Instruments
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments Derivative Financial Instruments
To mitigate the risk of an increase in interest rates on the First Lien Credit Facility, we entered into interest rate swaps on January 13, 2023, April 1, 2025 and April 9, 2025, along with an interest rate cap on October 1, 2025. We attempt to minimize our interest risk exposure by fixing our rate through the utilization of interest rate swaps and caps, which are derivative instruments. The interest rate swaps and cap mitigate the exposure on the variable component of interest on our First Lien Credit Facility. The interest rate swaps result in the fixed interest rate shown in the tables below on the swapped portion of the First Lien Credit Facility. The interest rate cap shown in the tables below limits the maximum interest rate we will pay on the covered portion of the First Lien Credit Facility. Our swaps and cap are entered into with financial
institutions that participate in the First Lien Credit Facility. By using a derivative instrument to hedge exposures to changes in interest rates, we expose ourselves to credit risk due to the possible failure of the counterparty to perform under the terms of the derivative contract.
As of June 30, 2026, we have the following interest rate swaps designated as hedging instruments:
Effective DatesFloating Rate DebtFixed Rates
January 31, 2026 through March 31, 2027$275.0 million3.59 %
January 31, 2026 through March 31, 2027$275.0 million3.27 %
As of December 31, 2025, we have the following interest rate swap or cap agreements designated as hedging instruments:
Effective DatesFloating Rate DebtFixed Rates
May 31, 2023 through January 31, 2026$506.7 million3.87 %
April 1, 2025 through January 30, 2026$80.0 million3.59 %
October 1, 2025 through April 30, 2026$127.0 million3.50 %
January 31, 2026 through March 31, 2027$275.0 million3.59 %
January 31, 2026 through March 31, 2027$275.0 million3.27 %
The gain or loss on the swaps or cap is recognized in accumulated other comprehensive income/(loss) and reclassified into earnings as adjustments to interest expense in the same period or periods during which the swaps or cap affect earnings. Gains or losses on the swaps or cap representing hedge components excluded from the assessment of effectiveness are recognized in current earnings.
The effect of derivative instruments designated as hedging instruments on the accompanying consolidated financial statements is as follows (in thousands):
Derivatives - Cash Flow Hedging RelationshipsAmount of Gain or
(Loss) Recognized
in AOCI/AOCL on
Derivative		Location of Gain or
(Loss) Reclassified
from AOCI/AOCL
into Income		Amount of Gain or
(Loss) Reclassified
from AOCI/AOCL
into Income		Total Interest
Expense on
Consolidated
Statements of
Operations
Interest rate swaps and cap:
Three months Ended June 30, 2026$550 Interest expense$302 $(19,646)
Three months Ended June 30, 2025$(732)Interest expense$717 $(18,255)
Six Months Ended June 30, 2026$2,070 Interest expense$458 $(40,293)
Six Months Ended June 30, 2025$(1,288)Interest expense$1,289 $(37,155)
The net amount of accumulated other comprehensive income expected to be reclassified to interest income in the next 12 months is $1.4 million.