v3.26.1
Note 6 - Indebtedness
 3 Months Ended
Jun. 30, 2026
Notes to Financial Statements  
Debt Disclosure [Text Block]

Note 6. Indebtedness 

 

Credit Facility

Our secured credit agreement matures in April 2029 and includes:

 

(i)

 A revolving credit facility with an aggregate principal amount of up to $125,000 (the "Revolver"),

(ii)

 A term loan with a maximum principal amount of $75,000, which is subject to escalating quarterly principal payments (the "Term Loan"),

(iii)

 A swingline loan with an aggregate principal amount not exceeding $5,000, and 

(iv)

 Letters of credit with an aggregate stated amount not exceeding $2,500 at any time. 

 

Borrowings under our Credit Facility bear interest at a Secured Overnight Financing Rate ("SOFR") rate or a base rate, plus an applicable spread that varies with our total net leverage ratio.

 

The weighted average interest rate on borrowings under the Credit Facility was 5.6% as of  June 30, 2026 and 5.9% as of March 31, 2026. 

 

The financial covenants in the Credit Facility include a maximum total net leverage ratio of 3.5 to 1.0 on each quarterly testing date after March 31, 2026. The Credit Facility also stipulates a minimum fixed charge coverage ratio of 1.25 to 1.0. Other covenants include restrictions on our ability to incur debt, grant liens, make fundamental changes to our business as defined in the contract, engage in certain transactions with affiliates, or conduct asset sales. As of  June 30, 2026, we were in compliance with all covenants under the Credit Facility.

 

Term Loan

We are required to make quarterly principal payments on the Term Loan. During the quarter ended June 30, 2026, we made a required payment of $1,406. For fiscal years ending March 31, required future debt payments on the Term Loan are as follows:

 

Fiscal Year

 

Amount

 

Remainder of 2027

 $4,219 

2028

  5,625 

2029

  7,500 

2030

  48,750 

Total principal remaining

 $66,094 

 

Unamortized debt issuance costs related to the Term Loan are reflected as a discount to the debt’s carrying value in our unaudited Condensed Consolidated Balance Sheets and are being amortized to interest expense through maturity. The net carrying amount of the Term Loan was as follows: 

 

  

June 30, 2026

  

March 31, 2026

 

Term Loan (5.6% and 5.9% as of June 30, 2026 and March 31, 2026, respectively)

 $66,094  $67,500 

Less: debt issuance costs

  (475)  (518)

Less: current portion

  (5,625)  (5,625)

Noncurrent portion

 $59,994  $61,357 

 

We recognized interest expense on the Term Loan as follows:

 

  

Three Months Ended June 30,

 
  

2026

  

2025

 

Interest expense (5.6% and 7.2% as of June 30, 2026 and 2025, respectively)

 $995  $1,292 

Amortization of debt issuance costs

  43   37 

Total interest and amortization of debt issuance costs

 $1,038  $1,329 

 

Revolver

As of  June 30, 2026, the outstanding balance under the Revolver was $77,250, and $47,750 was available for borrowing. Subsequent to June 30, 2026, we repaid an additional $4,000 on the Revolver.

 

We are obligated to pay quarterly unused commitment fees of between 0.20% and 0.35% of the Revolver’s aggregate principal amount, based on our leverage ratio.

 

The balance of unamortized customary lender fees related to the Revolver was $934 and $1,018 as of  June 30, 2026 and  March 31, 2026, respectively.

 

Convertible Notes

On August 15, 2025, our previously outstanding 1.375% convertible notes (the "Notes") matured. We settled the aggregate principal balance of $97,500 and accrued interest using borrowings under our Revolver and cash on hand. As of June 30, 2025, the Notes had a net carrying value of $97,432. Interest expense recognized in connection with the Notes during the three months ended June 30, 2025 was $470, consisting of coupon interest expense of $335 and amortization of debt issuance costs of $135.