v3.26.1
Long-Term Debt
 6 Months Ended
Jun. 30, 2026
Debt Disclosure [Abstract]  
Long-Term Debt
Note 5: Floor Plan Financing
Floor plan payables represent financing arrangements to facilitate the Company’s purchase of new and used trucks, cranes, and construction equipment inventory. All floor plan payables are collateralized by the inventory financed. These payables become due and payable upon the sale, transfer, or reclassification of each unit of inventory. Certain floor plan arrangements require the Company to satisfy various financial ratios consistent with those under the ABL Facility (as defined below). As of June 30, 2026, the Company was in compliance with these covenants.
The amounts owed under floor plan payables are summarized as follows:
(in $000s)June 30, 2026December 31, 2025
Trade:
Daimler Truck Financial$200,945 $137,225 
PACCAR Financial Corp133,059 140,742 
Ford Motor Credit Company, LLC35,202 13,248 
Trade floor plan payables$369,206 $291,215 
Non-trade:
PNC Equipment Finance, LLC$397,007 $366,208 
Non-trade floor plan payables$397,007 $366,208 
Interest on outstanding floor plan payable balances is due and payable monthly. Floor plan interest expense was $11.1 million and $21.7 million for the three and six months ended June 30, 2026, respectively, and $13.8 million and $27.1 million for the same periods in 2025.
Trade Floor Plan Financing:
Daimler Truck Financial
The Company is party to the Wholesale Financing Agreement with Daimler Truck Financial (the “Daimler Facility”), which bears interest at U.S. Prime Rate after an initial interest free period of up to 150 days. The total borrowing capacity under the Daimler Facility is $225.0 million, however, from time to time, Daimler extends credit to the Company in excess of this amount. The Daimler agreement is evergreen and is subject to termination by either party through written notice.
PACCAR
The Company has an Inventory Financing Agreement with PACCAR Financial Corp that provides the Company with a line of credit of $225.0 million as of June 30, 2026, to finance inventory purchases of new Peterbilt and/or Kenworth trucks, tractors, and chassis. Amounts borrowed against this line of credit incur interest at a rate of U.S. Prime Rate minus 0.71%. The PACCAR agreement extends automatically each April and is subject to termination by either party through written notice.
Ford Motor Credit Company, LLC
The Company is party to the Master Loan and Security Agreement with Ford Motor Credit Company, LLC (the “FMCC Facility”), which allows the Company to enter into individual loan supplements which bear interest based on the bank prime loan rate as reported by the Federal Reserve Board for the Friday preceding the last Monday of a given month. The total borrowing capacity under the FMCC Facility is $42.0 million. The FMCC agreement is evergreen and is subject to termination by either party through written notice.
References to the U.S. Prime Rate in the foregoing agreements represent the rate as published in The Wall Street Journal.
Non-Trade Floor Plan Financing:
PNC Equipment Finance, LLC
The Company has an Inventory Loan, Guaranty and Security Agreement (the “Loan Agreement”) with PNC Equipment Finance, LLC. The Loan Agreement, as of June 30, 2026, provides the Company with a $475.0 million revolving credit facility, which matures on August 25, 2026 and bears interest at a three-month term secured overnight financing rate (“SOFR”) plus 3.00%. The Company is in the process of renewing the Loan Agreement and expects to complete the renewal on or prior to the August 25, 2026 maturity date on terms substantially consistent with those of the existing agreement.
Note 7: Long-Term Debt
Debt obligations and associated interest rates consisted of the following:
(in $000s, except interest rate data) June 30, 2026December 31, 2025June 30, 2026December 31, 2025
ABL Facility$714,883 $697,975 5.8%6.1%
2029 Secured Notes920,000 920,000 5.5%5.5%
2023 Credit Facility17,113 17,297 5.8%5.8%
Other notes payable21,218 25,487 
5.9%-7.0%
3.1%-7.0%
Total debt outstanding1,673,214 1,660,759 
Deferred financing fees(13,353)(15,549)
Total debt, net of deferred financing fees1,659,861 1,645,210 
Less: current maturities(3,209)(25,858)
Long-term debt$1,656,652 $1,619,352 
As of June 30, 2026, borrowing availability under the ABL Facility was $229.4 million, and outstanding standby letters of credit were $5.7 million.
ABL Facility
The Company and certain of its direct and indirect subsidiaries are party to an asset-based revolving credit agreement (the “ABL Credit Agreement”), consisting of a $950.0 million first lien senior secured asset-based revolving credit facility (the “ABL Facility”), which matures on August 9, 2029, or, if earlier, the date that is 91 days prior to the maturity date of the Company’s existing senior notes or any debt that refinances such existing notes. Borrowings under the ABL Facility bear interest at a floating rate, which, at the Company’s election, could be (a) in the case of U.S. dollar denominated loans, either (i) SOFR plus an applicable margin or (ii) the base rate plus an applicable margin; or (b) in the case of Canadian dollar denominated loans, the term Canadian Overnight Repo Rate Average (the “CORRA” rate) plus an applicable margin. The applicable margin varies based on Average Availability (as defined in the ABL Credit Agreement) from (a) with respect to base rate loans, 0.50% to 1.00% and (b) with respect to SOFR loans and CORRA rate loans, 1.50% to 2.00%.
Notes Payable
Effective April 15, 2026, the Company renewed its loan agreement with Security Bank of Kansas City (“SBKC”), under which it had notes payable of $19.2 million as of June 30, 2026. The renewal extended the term of the agreement by five years to April 15, 2031, and increased the interest rate from 3.125% to 5.85%.