Debt |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt | NOTE 7: DEBT The Company’s outstanding debt consisted of the following as of the dates presented:
Amended Credit Agreement and Credit Facility
We are party to the Amended Credit Agreement with a group of lenders which, among other things, provides for a $500.0 million secured revolving credit facility (the “Credit Facility”). The Credit Facility has a maturity date of June 29, 2028. As of June 30, 2026 and December 31, 2025, we had no outstanding borrowings from the Credit Facility and $3.6 million of issued undrawn standby letters of credit. For the three and six months ended June 30, 2026 and 2025, total interest expense and commitment fees on our Credit Facility were not material. Term Loan B Facility On July 8, 2024, under the Amended Credit Agreement, the Company issued a $500.0 million Term Loan B Facility maturing July 8, 2031, with an interest rate based on secured overnight financing rate (“”) plus 2.75%. On March 20, 2025, under the Amended Credit Agreement, the Company increased its existing Term Loan B Facility in the amount of $350.0 million, also maturing July 8, 2031, with an interest rate based on SOFR plus 2.75% (the “Tack-On Incremental Term Loan B Facility”). The Tack-On Incremental Term Loan B Facility was offered at 98.56% of par. The proceeds from the Tack-On Incremental Term Loan B Facility was used to repay the Company's 2026 Senior Notes. We refer to the original Term Loan B Facility, combined with the Tack-On Incremental Term Loan B Facility, as the “Term Loan B Facility.” As of June 30, 2026, the interest rate on the Term Loan B Facility was 6.39% and, for the three and six months ended June 30, 2026 the weighted-average interest rate on the Term Loan B Facility was 6.40% and 6.42%, respectively. As of June 30, 2025, the interest rate on the Term Loan B Facility was 7.08% and, for the three and six months ended June 30, 2025 the weighted-average interest rate on the Term Loan B Facility was 7.05% and 7.06%, respectively. Principal payments of $4.3 million were made during both the six months ended June 30, 2026 and 2025. As of June 30, 2026 and December 31, 2025, unpaid interest on the Term Loan B Facility was not material. During the three and six months ended June 30, 2026, we recorded $13.5 million and $27.1 million of interest expense, respectively, while during the three and six months ended June 30, 2025, we recorded $15.1 million and $24.7 million of interest expense, respectively, on our unaudited condensed consolidated statements of operations. 2026 Senior Notes On April 1, 2026, upon maturity, the Company repaid the $345.0 million aggregate principal amount of the 2026 Senior Notes, including accrued interest of $0.4 million, funded by cash on hand. As a result of this transaction, the Company has no further obligations under the indenture governing the 2026 Senior Notes, and the related security interest and liens have been released. During the three and six months ended June 30, 2025, our effective interest rate, including debt issuance costs, was 0.32%, respectively, and total interest expense incurred from the 2026 Senior Notes was not material in any period. As of December 31, 2025, unpaid interest on the 2026 Senior Notes was also not material. Capped Call Transactions In connection with the issuance of the 2026 Senior Notes, the Company entered into privately negotiated capped call transactions (the “Capped Calls”) with certain of the initial purchasers of the 2026 Senior Notes and/or their respective affiliates and/or other financial institutions at a cost of $34.7 million. In connection with the maturity and repayment of the 2026 Senior Notes on April 1, 2026, as discussed above, the Capped Calls expired unexercised. Refer to “Note 8: Debt” in the notes to the audited consolidated financial statements in Item 8 of our 2025 Annual Report, for additional information pertaining to redemption, conversion, repurchase features and other information regarding the Amended Credit Agreement, the Credit Facility, the Term Loan B Facility, 2026 Senior Notes and Capped Calls. |
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