Debt |
6 Months Ended | ||||||||||||||||||||||||||||||||
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Jun. 30, 2026 | |||||||||||||||||||||||||||||||||
| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||
| Debt | NOTE 5. Debt
Revolving Loan. As of June 30, 2026, $300.0 million was available to borrow under the revolving loan due in 2029 ("Revolving Loan"), and the Company had $50.0 million of outstanding borrowings. During the six months ended June 30, 2026, the Company made $5.0 million in cash payments on the Revolving Loan, and there were no additional borrowings. The Revolving Loan is governed by our Credit Agreement dated as of May 31, 2017 among the Company, as Borrower, each lender from time to time party hereto, the other parties party hereto and JPMorgan Chase Bank, N.A., as Administrative Agent (as amended from time to time, the "Credit Agreement").
Senior Unsecured Notes. In October 2020, the Company issued $400.0 million aggregate principal amount of 6.375% Senior Unsecured Notes due in 2028. Interest on the notes is due semi-annually on May 1 and November 1.
Fair Value. The Company's debt is classified as Level 2 in the fair value hierarchy, and the fair value is measured based on comparable trading prices, ratings, sectors, coupons and maturities of similar instruments. Level 2 assets and liabilities are based on observable inputs other than quoted prices, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. The approximate fair value and related carrying value of the Company's outstanding indebtedness as of June 30, 2026 and December 31, 2025 were as follows (in millions):
Debt Covenants. As of June 30, 2026, the Company was in compliance with the covenants under its debt agreements. The Company’s borrowings are limited primarily by: 1) Senior Secured Net Leverage Ratio (as defined in the Credit Agreement) not to exceed 3.5x; and 2) Consolidated Interest Coverage Ratio (as defined in the Credit Agreement) not to be below 3.0x. As of June 30, 2026, the Company's Senior Secured Net Leverage Ratio was 0.08x and its Consolidated Interest Coverage Ratio was 7.20x. As of June 30, 2026, the Company's Total Net Leverage Ratio (as defined in the Credit Agreement) was 1.95x. |
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