v3.26.3
Financing Agreements
 9 Months Ended
Sep. 30, 2026
Debt Disclosure [Abstract]  
Financing Agreements Financing Agreements
The carrying value of financing obligations and the average related interest rates were as follows (in millions):
Average interest rate as of September 30, 2026MaturitySeptember 30, 2026December 31, 2025
Senior notes due 20296.95%March 2029500.0 500.0 
Revolving loan facility4.79%December 2029149.2 35.4 
Term loan facility5.50%December 2029456.3 475.0 
Senior notes due 20315.60%March 2031500.0 500.0 
Finance lease obligations5.24%Various through 20295.7 7.3 
Notes payable and other4.30%Various through 203031.2 39.2 
Unamortized debt issuance costs and discounts(14.0)(17.4)
Total financing obligations$1,628.4 $1,539.5 
Less: Current financing obligations35.2 34.8 
Total long-term financing obligations$1,593.2 $1,504.7 
Debt issuance costs and discounts are recognized as a reduction in the carrying value of the related long-term debt in the consolidated balance sheets and are amortized to interest expense in the consolidated statements of income (loss) over the expected remaining terms of the related debt.
As of September 30, 2026, the Company had open letters of credit totaling $59.4 million primarily related to inventory purchases.
Unsecured credit facility. The Company maintains an unsecured credit facility which consists of a term loan facility (the “Term Loan Facility”) and a revolving loan facility (the “Revolving Loan Facility”). An amendment was completed in December 2024 that reduced the Term Loan Facility to $500.0 million, of which $456.3 million was outstanding as of September 30, 2026, and extended the maturity date of the Term Loan Facility to December 2029. The Company is required to make principal payments under the Term Loan Facility totaling $25.0 million over the next 12 months. The amendment, completed in December 2024, also increased the Revolving Loan Facility to $1.4 billion, of which $149.2 million was outstanding as of September 30, 2026, and extended the maturity date to December 2029. Interest under the Term Loan Facility and Revolving Loan Facility is charged at rates based on adjusted Term SOFR plus the applicable add-on percentage, as defined in the credit agreement.
The agreement governing the credit facility contains covenants that require the Company to maintain certain financial ratios, including minimum interest coverage and maximum leverage ratios. The credit agreement requires the Company to maintain an interest coverage ratio of not less than 3.00 to 1.00 and a leverage ratio of not more than 3.50 to 1.00 on a rolling four quarter basis. The interest coverage ratio is calculated as Adjusted EBITDA to interest expense for the then most-recently ended four fiscal quarters. The leverage ratio is calculated as consolidated funded indebtedness less cash and cash equivalents, capped at $300 million, to Adjusted EBITDA for the then most-recently ended four fiscal quarters. The Company was previously subject to modified covenants during a covenant relief period applicable for each quarter ended June 30, 2025 through and including June 30, 2026. That covenant relief period ended in the third quarter of 2026. The Company was in compliance with all covenants as of September 30, 2026.
Senior notes. In November 2023, the Company issued $500 million aggregate principal amount of 6.95% Senior Notes due 2029 (the “6.95% Senior Notes”) in an underwritten public offering. The Company received approximately $492 million in net proceeds from the offering after deducting the underwriting discount and other fees and expenses. The 6.95% Senior Notes bear interest at a rate of 6.95% per year and mature in March 2029. In November 2025, the Company issued $500 million aggregate principal amount of 5.60% Senior Notes due 2031 (the “5.60% Senior Notes” and together with the 6.95% Senior Notes, the “senior notes”) in an underwritten public offering. The Company received approximately $497 million in net proceeds from the offering after deducting the underwriting discount and other fees and expenses. The 5.60% Senior Notes bear interest at a rate of 5.60% and mature in March 2031. All of the Company’s senior notes are governed by an indenture and are subject to customary covenants and make-whole provisions upon early redemption.
Acquisition-related deferred payments. On July 2, 2018, pursuant to the Agreement and Plan of Merger dated May 29, 2018, the Company completed the acquisition of Boat Holdings, LLC, a privately held Delaware limited liability company, headquartered in Elkhart, Indiana that manufactures boats (“Boat Holdings”). As a component of the Boat Holdings merger agreement, the Company has committed to make a series of deferred payments to the former owners following the closing date of the merger through July 2030. The original discounted payable was for $76.7 million, of which $30.0 million was outstanding as of September 30, 2026. The outstanding balance is included in long-term financing obligations and current financing obligations in the consolidated balance sheets.