v3.26.1
Credit Agreements
 6 Months Ended
Jun. 30, 2026
Debt Disclosure [Abstract]  
Credit Agreements 4. Credit Agreements
As of June 30, 2026 and December 31, 2025, the Company’s long-term debt, net of issuance costs was as follows (in thousands):
As of
June 30, 2026December 31, 2025
Long-term debt:
Principal balance$1,436,563 $1,855,000 
Less: unamortized issuance costs(25,864)(35,300)
Total balance1,410,699 1,819,700 
Less: current portion
(18,550)(18,550)
Total long-term debt, net$1,392,149 $1,801,150 


Credit Facility
On September 30, 2021, the Company entered into a credit agreement (as amended from time to time, the “2021 Credit Agreement”) that provides for a term loan facility and a revolving credit facility (collectively, the “Credit Facility”). On September 8, 2025, the Company amended the 2021 Credit Agreement (the “2025 Amendment”). Pursuant to the 2025 Amendment, the Company refinanced all outstanding borrowings under the 2021 Credit Agreement and increased the aggregate principal amount to $1,855.0 million (the “Term Loan Facility”). Additionally, the Company terminated the previous revolving credit facility and established a new revolving credit facility (the “Revolving Credit Facility”) with a borrowing capacity of $195.5 million. The maturity dates for the Term Loan Facility and Revolving Credit Facility are September 8, 2032 and September 8, 2030, respectively. Furthermore, the unused balance on the Revolving Credit Facility is subject to an unused commitment fee ranging from 0.25% to 0.50% per annum based on the Company's leverage ratio. The Company may prepay the Term Loan Facility in whole or in part at any time without penalty. On June 29, 2026, the Company used IPO proceeds to prepay $409.2 million in aggregate principal of the Term Loan Facility. The Company recognized a loss on extinguishment of debt of $7.4 million related to the write-off of unamortized debt issuance costs associated with the extinguished debt.
Borrowings under the 2021 Credit Agreement bear interest at different rates based on the type of loan drawn by the Company. With respect to the Term Loan Facility, loans drawn as Secured Overnight Financing Rate (“SOFR”) loans bear interest at the Term SOFR (as defined in the 2021 Credit Agreement) plus a floor of 4.00%. Term loans drawn as Base Rate (as defined in the 2021 Credit Agreement) loans bear interest at Base Rate plus a floor of 3.00%. The Base Rate is the greater of the federal funds effective rate plus 0.50%, the Prime Rate (as defined in the 2021 Credit Agreement), or SOFR plus 1.00%.
Interest on borrowings under the Revolving Credit Facility are, at the Company’s option, either based on the Base Rate or Term SOFR, with the exception of swing line borrowings, which are always at the Base Rate, plus a floor that ranges from 2.25% to 3.75% based on the Company’s consolidated first lien net leverage ratio. There were no borrowings outstanding under the Revolving Credit Facility or swing line loan as of June 30, 2026 and December 31, 2025.
In connection with the IPO, the interest rates associated with the Term Loan Facility and Revolving Credit Facility were reduced by 0.25%.
Payments equal to 0.25% of the aggregate principal balance of the Term Loan Facility as of September 8, 2025 or 1.00% total for any given 12-month period, are due quarterly until the current maturity date of September 8, 2032, at which time all unpaid principal and interest are due.
The 2021 Credit Agreement contains certain affirmative and negative covenants, including maintenance of certain debt to EBITDA ratios as defined in the agreement. The Company was in compliance with the covenants as of June 30, 2026 and December 31, 2025.
The unused commitment fee for the revolving credit facility was $0.2 million and $0.4 million for the three and six months ended June 30, 2026, respectively and $0.2 million and $0.3 million for the three and six months ended June 30, 2025, respectively. This is recognized as general and administrative expense on the condensed consolidated statements of operations. During the three and six months ended June 30, 2026, amortization of debt issuance costs associated with the Term Loan Facility was $1.1 million and $2.1 million, respectively and $1.5 million and $3.1 million for the three and six months ended June 30, 2025, respectively.