v3.26.1
Debt
 6 Months Ended
Jun. 30, 2026
Debt Disclosure [Abstract]  
Debt
7.
Debt

The Company’s notes payable consisted of the following as of June 30, 2026 and December 31, 2025:

 

June 30,

 

 

December 31,

 

 

2026

 

 

2025

 

 

(in thousands)

 

Term note

$

763,962

 

 

$

502,800

 

Other notes payable

 

4,516

 

 

 

3,967

 

Total notes payable

 

768,478

 

 

 

506,767

 

Issuance costs

 

(11,541

)

 

 

(7,619

)

Subtotal

 

756,937

 

 

 

499,148

 

Less: current portion of notes payable

 

(5,610

)

 

 

(3,836

)

Long-term notes payable

 

751,327

 

 

 

495,312

 

On February 2, 2026, the Company entered into a Third Amendment to its Credit Agreement (the “Third Amendment”), which amends the Credit Agreement, dated as of April 1, 2025 (as amended by the First Amendment to Credit Agreement, dated as of May 27, 2025 and Second Amendment to Credit Agreement, dated as of October 24, 2025) by and among the Company, Citibank, N.A., as Administrative Agent and Collateral Agent (“Citibank”), and the other parties thereto (as amended from time to time, the “Credit Agreement”).

Under the terms of the Third Amendment, the Company (i) refinanced its existing term loans in an aggregate principal amount of $502.8 million to reduce the interest rate applicable thereto by 75 basis points to SOFR plus 2.75% and (ii) reduced the interest rate applicable to its revolving credit facility by 75 basis points for each level of its leverage-based pricing grid, the highest of such levels being set at SOFR plus 2.50%. In addition, following the refinancing of the existing term loans, the Company increased the principal amount of its term loans by $265.0 million, for a total principal amount of $772 million. As of June 30, 2026, the principal of the term note outstanding was $764.0 million.

Interest rates were 6.46% and 7.50% as of June 30, 2026 and December 31, 2025, respectively. No accrued interest was recorded under the Credit Agreement as of June 30, 2026 and December 31, 2025.

On March 9, 2026, the Company entered into a Fourth Amendment to its Credit Agreement. Under the terms of the Fourth Amendment, the Company (i) increased the revolving credit commitments by $100.0 million such that the total revolving credit commitments are now $150.0 million and (ii) removed the cap on incremental revolving credit commitments, which was previously $50.0 million. The Company did not draw from the revolving credit facility during the six months ended June 30, 2026. There was no outstanding balance on the revolving credit facility as of June 30, 2026.

All other terms and conditions of the Credit Agreement remain unchanged. The aforementioned amendments are accounted for as debt modifications. The company incurred debt issuance costs of $4.9 million associated with these amendments.

The Credit Agreement governing the revolving credit facility and term note requires the Company to comply with a springing financial covenant that is tested on the last day of any testing fiscal quarter if and when the outstanding principal amount of revolving credit loans exceeds an applicable threshold. If the financial covenant is then in effect, the Company is required to maintain a Consolidated First Lien Net Leverage Ratio of less than or equal to 6.50 to 1.00. The financial covenant is also conditioned upon the Company’s requirement to deliver quarterly financial statements to the lender under the credit agreement. As there was no outstanding balance on the revolving credit facility as of June 30, 2026, the springing financial covenant was not required. The Company was in compliance with its debt covenant as of June 30, 2026.

On August 3, 2026, the Company entered into a Fifth Amendment to its Credit Agreement, which amends the Credit Agreement, dated April 1, 2025, by and among the Company, Citibank, N.A. as Administrative Agent and Collateral Agent (“Citibank”), and the other parties there to. The Fifth Amendment reduced (i) the applicable interest rate margin on its term loans from SOFR plus 2.75% to SOFR plus 2.25% and (ii) the interest rate applicable to its revolving credit facility by 50 basis points for each level of our leverage-based pricing grid, the highest of such levels being set at SOFR plus 2.00%. No other material terms of the Credit Agreement were amended.