v3.26.1
DEBT
 6 Months Ended
Jun. 30, 2026
Debt Disclosure [Abstract]  
DEBT
9. DEBT

Long-term debt, net consists of the following:
As of June 30, 2026As of December 31, 2025
(In thousands)
10.500% First Lien Senior Secured Notes due 2030 (1, 3)
$60,600 $60,600 
7.625% Second Lien Secured Notes due 2031 (1, 3)
235,113 291,020 
7.375% Senior Secured Notes due February 2028 (2)
7,516 11,816 
Total principal outstanding on long-term debt303,229 363,436 
Less: Unamortized debt issuance costs(2,479)(2,868)
Add: Premium (3)
98,548 69,174 
Long-term debt, net$399,298 $429,742 
(1) The 2030 First Lien Notes and 2031 Second Lien Notes pay interest semiannually on April 1 and October 1 of each year in arrears.
(2) Subsequent to the effectiveness of the supplemental indenture on December 18, 2025, these notes are no longer secured. While these notes are styled as senior secured notes they are no longer secured by collateral. The 2028 Notes pay interest semiannually on February 1 and August 1 of each year in arrears.
(3) The 2030 First Lien Notes and 2031 Second Lien Notes are accounted for under Accounting Standards Codification No. 470-60, Troubled Debt Restructurings by Debtors.
From time to time, the Company may repurchase its debt securities in open market purchases. Under open authorizations by the Company's Board of Directors, repurchases of the outstanding debt may be made from time to time on the open market or in privately negotiated transactions in accordance with applicable laws and regulations. Repurchased debt is retired when repurchased. The timing and extent of any repurchases will depend upon prevailing market conditions, the trading price of the Company’s outstanding debt and other factors, and subject to restrictions under the terms of the Company's indenture, credit agreement and applicable law.
The following table details the repurchase activity of the 2031 Second Lien Notes:

Three Months Ended June 30, 2026Three Months Ended March 31, 2026
(In thousands)
Repurchased amount at par value$23,459 $32,448 
Weighted-average percentage of par42.0 %40.7 %
As the 2031 Second Lien Notes are accounted under Accounting Standards Codification No. 470-60, Troubled Debt Restructurings by Debtors, no gain was recorded. Instead, the Company recorded an additional premium of $19.3 and $13.6 million during the three months ended March 31, 2026 and June 30, 2026, respectively, which is included in long-term debt, net on the Company's condensed consolidated balance sheets.
The premium will result in interest expense being recognized at an effective interest rate of approximately 5.32% and 0.15% through the term of the 2030 First Lien Notes and 2031 Second Lien Notes, respectively. The difference in the contractual interest payments and interest expense will reduce the premium.
The following table details the repurchase activity of the 2028 Notes:

Three Months Ended March 31, 2026Three Months Ended June 30, 2025Three Months Ended March 30, 2025
(In thousands)
Repurchased amount at par value$4,300 $64,012 $28,227 
Weighted-average percentage of par51.0 %51.8 %58.0 %
Net gain on retirement of debt (a)
$2,080 $30,297 $11,587 
(a) Included in the unaudited condensed consolidated statement of operations.
The Company’s effective interest rate for the 2028 Notes for the three and six months ended June 30, 2026 and 2025 were approximately 7.71% and 7.72%, respectively.
As of June 30, 2026, the fair value of long- term debt is as follows:
(In thousands)
2030 First Lien Notes$58,176 
2031 Second Lien Notes$85,062 
2028 Notes$3,908 
The fair value of the 2030 First Lien Notes, the 2031 Second Lien Notes, and the 2028 Notes, classified as a Level 2 instrument, was determined based on the trading values of this instrument in an inactive market as of the reporting date.
After giving effect to all the repurchases of the outstanding debt, the Company has approximately $19.9 million remaining under the current authorization by the Board of Directors on a cash basis.
Asset-Backed Line of Credit
The drawdowns made in 2026 as well as the related interest rates and maturity dates are as follows:
Subsequent to June 30, 2026Three months ended June 30, 2026Three months ended June 30, 2026Three months ended March 31, 2026
Amount (in thousands)$7,000$5,000$5,000$10,000
Draw Date7/6/20265/4/20264/7/20263/26/2026
Interest Rate6.12%6.01%6.75%6.09%
Original Maturity Date1/3/20278/2/2026Repayable any time9/21/2026
Borrowing Capacity$19,067$26,067$31,067$31,772
The Company repaid the $10.0 million borrowing drawn on December 18, 2025 in the first quarter of 2026. After giving effect to the outstanding $20.0 million drawdown and adjustments to account for the Borrowing Base, the Company's borrowing capacity was approximately $26.1 million as of June 30, 2026. The Company repaid the May 2026 draw of $5.0 million on August 2, 2026. After giving effect to the additional draw of $7.0 million, the $5.0 million repayment, and adjustments to account for the Borrowing Base, the Company's borrowing capacity was approximately $24.1 million.
While the Company’s cash flows are considered to be sufficient to fund our current operations, the Company has used and may continue to use borrowings under the Current ABL Facility to meet future cash needs for working capital or business initiatives.
Future Minimum Principal Payments
Future scheduled minimum principal payments of long-term debt as of June 30, 2026, are as follows:
Long-term debt
(In thousands)
Remainder of 2026$— 
2027— 
20287,516 
2029— 
203060,600 
2031235,113 
Total debt$303,229 
The deferred financing costs included in interest expense for all instruments, for each of the three and six months ended June 30, 2026 were approximately $0.2 million and $0.5 million, respectively. The deferred financing costs included in interest expense for all instruments, for each of the three and six months ended June 30, 2025 was approximately $0.4 million and $0.9 million, respectively. The Company is in compliance with all of its debt covenants as of June 30, 2026 and expects to remain in compliance with all covenants over at least the next 12 months.