Debt and Derivatives (Tables)
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6 Months Ended |
Jun. 30, 2026 |
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| Debt Disclosure [Abstract] |
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| Schedule of Total Outstanding Debt |
The table below summarizes the total outstanding debt of the Company (in thousands):
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June 30, 2026 |
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December 31, 2025 |
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Rate |
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Amount |
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Rate |
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Amount |
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First Lien Incremental Term Loan Tranche B-6 - payable to lenders at SOFR
plus applicable margin |
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5.62 |
% |
|
$ |
2,214,872 |
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|
|
— |
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$ |
— |
|
First Lien Incremental Term Loan Tranche B-5 - payable to lenders at SOFR
plus applicable margin |
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— |
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|
— |
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6.22 |
% |
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2,521,255 |
|
Revolving Credit Loans - payable to lenders at SOFR plus applicable margin |
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|
5.62 |
% |
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|
— |
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6.47 |
% |
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— |
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Swingline/Base Rate - payable to lenders at ABR plus applicable margin |
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7.75 |
% |
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— |
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8.50 |
% |
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— |
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Amortizing Notes (1) |
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19,278 |
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31,360 |
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Notes payable and other |
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15,103 |
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17,129 |
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Total debt |
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2,249,253 |
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2,569,744 |
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Less: debt issuance costs, net |
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58,493 |
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62,200 |
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Total debt, net of debt issuance costs |
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2,190,760 |
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2,507,544 |
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Less: current portion of long-term debt |
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41,445 |
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52,340 |
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Total long-term debt, net of current portion |
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$ |
2,149,315 |
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$ |
2,455,204 |
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See Note 7 for discussion of Amortizing Notes
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| Summary of Carrying Value and Estimated Fair Values of Debt Obligations |
The following table presents the carrying value and estimated fair values of the Company’s debt obligations as of June 30, 2026 (in millions):
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Fair Value at Reporting Date Using |
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Financial Instrument |
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Carrying Value as of June 30, 2026 |
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Markets for Identical Item (Level 1) |
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Significant Other Observable Inputs (Level 2) |
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Significant Unobservable Inputs (Level 3) |
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First Lien Term Loan |
|
$ |
2,214,872 |
|
|
$ |
— |
|
|
$ |
2,214,872 |
|
|
$ |
— |
|
Amortizing Notes |
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19,278 |
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— |
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19,302 |
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— |
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Total debt instruments |
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$ |
2,234,150 |
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$ |
— |
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$ |
2,234,174 |
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$ |
— |
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| Schedule of Interest Rate Swap with Notional Value |
The following table summarizes our interest rate swaps designated as cash flow hedges (in millions):
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Notional Amount as of |
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Financial Institution |
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June 30, 2026 |
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December 31, 2025 |
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Effective Dates |
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Fixed Rates |
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Credit Agricole Corporate and Investment Bank |
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$ |
500 |
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$ |
500 |
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1-year period ending September 30, 2026 |
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3.72500 |
% |
Mizuho Capital Markets |
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|
500 |
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|
500 |
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1-year period ending September 30, 2026 |
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|
3.61121 |
% |
Credit Agricole Corporate and Investment Bank |
|
|
250 |
|
|
|
250 |
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3-year period ending September 30, 2028 |
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3.33150 |
% |
Morgan Stanley |
|
|
250 |
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|
250 |
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3-year period ending September 30, 2028 |
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3.17700 |
% |
Existing contracts |
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$ |
1,500 |
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$ |
1,500 |
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Mizuho Capital Markets |
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$ |
500 |
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$ |
500 |
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2-year period ending September 30, 2028 |
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3.20220 |
% |
Forward starting contracts (1) |
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$ |
500 |
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$ |
500 |
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(1)During the fourth fiscal quarter of 2025, we entered into a forward starting interest rate swap agreement, with a $500 million notional amount, to hedge the cash flow risk of variability in interest payment on our variable rate borrowings. The effective date of the forward starting interest rate swap agreement is September 30, 2026. As of June 30, 2026, this contract meets the criteria of a cash flow hedge.
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