DEBT |
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| Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| DEBT | 6. DEBT
Long-term debt
The Company’s long-term debt obligations consist of the following (in US$ thousands):
2021 Secured Facilities Agreement
On November 4, 2021, the Company entered into an $860 million Secured Facilities Agreement (the “2021 Secured Facilities Agreement”). At inception, the 2021 Secured Facilities Agreement consisted of a $430 million term loan due by November 4, 2027 (the “Secured Term Loan”), an $80.0 million revolving credit facility due by November 4, 2025 (the “Secured Revolving Credit Facility”), and a $350 million working capital facility that renews annually or bi-annually by mutual agreement between the lenders and the Company. The Secured Revolving Credit Facility was extended from November 4, 2025, to February 4, 2026, by mutual agreement of the Company and its lenders. Following February 4, 2026, the Company did not extend its Secured Revolving Credit Facility, as operating cash flow, together with available cash and cash equivalents, is sufficient to support working capital, capital expenditures, and debt repayment obligations. The Company is currently working with its lenders to refinance and extend the 2021 Secured Facilities Agreement.
Borrowings under the Secured Term Loan incur, and prior borrowings under the Secured Revolving Credit Facility incurred, interest based on the secured overnight financing rate (“SOFR”) for U.S. dollar-denominated borrowings or the Saudi Arabian Interbank Offered Rate (“SAIBOR”) for Saudi Arabia Riyal borrowings plus 2.6% to 3.0% per annum, varying based on the Company’s Net Debt / EBITDA ratio as defined in the 2021 Secured Facilities Agreement. As of June 30, 2026, and December 31, 2025, this resulted in interest rates of 6.50% and 7.13%, respectively, for U.S. dollar-denominated borrowings, and interest rates of 7.29% and 7.61%, respectively, for Saudi Arabian Riyal borrowings. As of June 30, 2026, and December 31, 2025, the Company had drawn $225.8 million and $258.0 million, respectively, of the Secured Term Loan, and $0.0 (zero) million and $0.0 (zero) million, respectively, of the Secured Revolving Credit Facility. Additionally, as of June 30, 2026, and December 31, 2025, the Company had $0.0 (zero) million and $59.2 million, respectively, available to be drawn under the Secured Revolving Credit Facility.
The 2021 Secured Facilities Agreement also includes a working capital facility (the “Working Capital Facility”) of $283.8 million and $325.0 million as of June 30, 2026, and December 31, 2025, respectively, for issuance of letters of guarantee, letters of credit and refinancing letters of credit into debt over a period of no more than two years, which carries an interest rate equal to SOFR for U.S. dollar-denominated borrowings, or SAIBOR for Saudi Arabia Riyal borrowings, for the applicable interest period, plus a margin of 1.25% to 1.5% per annum. As of June 30, 2026, and December 31, 2025, this resulted in interest rates of 5.15% and 7.13%, respectively, for U.S. dollar-denominated borrowings, and interest rates of 6.19% and 7.61%, respectively, for Saudi Arabian Riyal borrowings. The Working Capital Facility requires the payment of a commitment fee each quarter. The commitment fee is computed at the rate of 0.3125% (25% of the margin) on the facility lender’s available commitment for the relevant quarter. The Working Capital Facility decreased by $41.2 million during the six-month period ended June 30, 2026, due to the scheduled expiration of one tranche of availability within the lender syndicate as partially offset by new commitments. As of June 30, 2026, and December 31, 2025, the Company had utilized $266.3 million and $243.8 million, respectively, under this Working Capital Facility and the balance of $17.5 million and $81.2 million, respectively, was available to the Company. Subsequent to June 30, 2026, the Company received additional working capital commitments totaling $18.0 million, further increasing available liquidity.
The 2021 Secured Facilities Agreement includes covenants that specify maximum leverage (Net Debt / EBITDA) up to 3.50, minimum debt service coverage ratio (Cash Flow / Debt Service) of at least 1.25, and interest coverage (EBITDA / Interest) of at least 4.00. As of June 30, 2026, and December 31, 2025, the Company was in compliance with all financial and non-financial covenants under the 2021 Secured Facilities Agreement.
Short-term debt
The Company’s short-term debt obligations consist of the following (in US$ thousands):
Short-term borrowings primarily consist of financing for capital equipment and inventory purchases.
Other debt information
Scheduled principal payments of long-term debt for periods subsequent to June 30, 2026, are as follows (in US$ thousands):
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