v3.26.1
Debt
 6 Months Ended
Jun. 30, 2026
Debt Disclosure [Abstract]  
Debt Debt
Long-term debt consisted of the following:
June 30, 2026December 31, 2025
Term notes$1,345.6 $3,977.7 
Senior notes1,035.0 1,035.0 
Senior secured notes700.0 700.0 
Equipment loans and financing leases5.8 5.7 
Mortgage payable— 0.6 
Discounts and financing fees, net(32.7)(68.6)
Total debt3,053.7 5,650.4 
Less: Current maturities(2.2)(27.8)
Long-term debt, net of current maturities$3,051.5 $5,622.6 
Term Notes and Revolving Credit Facility. In March 2026, the Company's subsidiary Madison IAQ LLC entered into the Sixth Amendment to the Credit Agreement (the "Sixth Amendment") which effectiveness was subject to the Company's prepayment of the Initial Term Loan and other customary conditions precedent. The Sixth Amendment became effective on May 15, 2026. During the three months ended June 30, 2026, the Company prepaid $2,425.7 of principal outstanding under the Initial Term Loan and recognized a loss on debt extinguishment of $26.2, representing the write-off of unamortized discounts and financing fees. The loss is included in interest and financing expenses, in the condensed consolidated statements of income (loss). The Sixth Amendment also increased the capacity under the Company's revolving credit facility to $1,300.0. The Company capitalized $4.9 of lender fees and third-party costs associated with the Sixth Amendment, which are included in prepaid and other current assets in the condensed consolidated balance sheets. Total deferred costs associated with the revolving credit facility, as of the effective date of the Sixth Amendment was $5.7 which is amortized on a straight-line basis through March 28, 2028.
In June 2026, the Company's subsidiary Madison IAQ LLC prepaid $200.0 of principal under its Incremental Term Loan Facility and entered into the Seventh Amendment to its Credit Agreement (the “Seventh Amendment”), which became effective on June 4, 2026. The Seventh Amendment reduced the applicable margin on borrowings under the Incremental Term Loan Facility by 100 basis points for both SOFR and Base Rate loans and removed the margin step-up and step-down. Following the Seventh Amendment the applicable margin for the Incremental Term Loan Facility is 1.75% for Term SOFR loans and 0.75% for Base Rate loans. In connection with the Seventh Amendment, the Company recognized a loss on debt extinguishment of $1.5, related to the write-off of unamortized debt issuance costs and original issue discount. The loss is included in interest and financing expenses, in the condensed consolidated statements of income (loss).
Borrowings under the Credit Agreement bear variable interest rates. The weighted average interest rate for borrowing outstanding under the term loans was 5.5% and 6.7% at June 30, 2026 and December 31, 2025, respectively, before giving effect to the benefit of interest rate hedges. During the six months ended June 30, 2026 and 2025, no amounts were borrowed or repaid on the revolving credit facility. The Credit Agreement includes a fee on unused revolving commitments equal to 25 basis points of the unused commitments. Following the quarter ended September 30, 2026, the fee may be reduced by 5 basis points based on the First Lien Net Leverage Ratio.
Senior Notes. The Company has $1,035.0 in Senior Notes payable as of June 30, 2026 and December 31, 2025. The Senior Notes accrue interest at 5.9% per annum and are due in June 2029.
Senior Secured Notes. The Company has $700.0 in Senior Secured Notes payable as of June 30, 2026 and December 31, 2025. The Senior Secured Notes accrue interest at 4.1% per annum and are due in June 2028.
Mortgage Payable. A wholly owned subsidiary of the Company had an outstanding mortgage loan. The mortgage bore an interest rate at SOFR plus 3.83%. In 2025, the Company extended the maturity date of the mortgage from January 2025 to January 2028. In January 2026, the Company repaid in full its outstanding mortgage obligation, with a total principal payment of $0.6. As a result of this repayment, the Company has no remaining mortgage obligation and the real estate held as collateral has been released from its lien.
Debt Covenants. Certain indebtedness contains a financial covenant and non-financial covenants. The financial covenant is only operative if the Company had outstanding amounts drawn on the Revolving Credit Facility above a certain threshold. Borrowings under the Revolving Credit Facility, Term Loan, and Senior Secured Notes are collateralized by a majority of the Company’s assets. The Company was in compliance with the covenants as of June 30, 2026.
Interest expense on long-term debt was $53.8 and $84.1 for the three months ended June 30, 2026 and 2025, respectively, and $139.5 and $149.7 for the six months ended June 30, 2026 and 2025, respectively. Amortization of discounts and finance fees was $3.5 and $3.7 for the three months ended June 30, 2026 and 2025, respectively, and $8.2 and $7.1 for the six months ended June 30, 2026 and 2025, respectively.
The Company had letters of credit outstanding of $12.9 for both June 30, 2026 and December 31, 2025, respectively, of which $5.7 reduced our borrowing capacity at June 30, 2026 and December 31, 2025, respectively.
The fair value of debt as of June 30, 2026 was $3,068.0. The carrying value of the Company's debt approximates the fair value as of December 31, 2025.
Following the execution of the Sixth Amendment, the Company's Term Loans under the Credit Agreement are due at maturity and are no longer subject to scheduled principal amortization.