v3.26.3
Derivatives and Hedging Activities
 9 Months Ended
Sep. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives and Hedging Activities Derivatives and Hedging Activities
As of September 30, 2026, the Company had 12 interest rate swaps with a total notional amount of $325.0 million that are used to manage its interest rate risk and fix the SOFR component on the term loans of the Second A&R Credit Facilities. In addition, as of September 30, 2026, the Company has three starting interest rate swaps with a combined notional value of $215.0 million that will become effective upon the maturity of existing swaps in January 2027, February 2028 and January 2030.

Notional Amount ($ in thousands)
Fixed Rate (1)
Effective Date Maturity Date
$50,0001.620%May 2022January 2027
$25,0003.567%May 2022February 2028
$25,0003.567%May 2022February 2028
$25,0004.140%July 2022February 2028
$40,0004.282%December 2022February 2028
$25,0005.086%July 2023January 2027
$10,0005.399%September 2023February 2028
$40,0004.621%October 2024February 2028
$10,0004.902%November 2024February 2028
$10,0004.185%September 2025January 2030
$30,0004.153%September 2025January 2030
$35,0004.756%July 2026January 2031
$75,000(2)
3.889%January 2027January 2031
$100,000(2)
3.829%February 2028February 2029
$40,000(2)
3.868%January 2030January 2031


Explanatory Note:
(1)     Reflects the all-in effective interest rate, as of September 30, 2026, for the specified portion of the Term Loans hedged by the interest rate swaps. The interest rate for the three starting interest rate swaps represent only the strike price.
(2)    Indicates starting interest rate swaps with a combined notional value of $215.0 million that will become effective upon the maturity of existing swaps in January 2027, February 2028 and January 2030 discussed above.
The Company’s objectives in using the interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish these objectives, the Company uses the interest rate swaps as part of its interest rate risk management strategy. The interest rate swaps are designated as cash flow hedges, with any gain or loss recorded in “Accumulated other comprehensive income” on the Consolidated Balance Sheets and subsequently reclassified into interest expense as interest payments are made on the Second A&R Credit Facilities. During the next twelve months, the Company estimates that an additional $3.4 million will be reclassified from “Accumulated other comprehensive income” as a decrease to interest expense.

The Company does not use derivatives for trading or speculative purposes and currently does not have any derivatives that are not designated as cash flow hedges.

The table below presents the effect of the Company’s interest rate swap derivative instruments in the Consolidated Statements of Operations and Comprehensive Income for the three and nine months ended September 30, 2026 and 2025 (in thousands):
For the Three Months Ended
September 30,		For the Nine Months Ended
September 30,
Derivatives in Cash Flow Hedging Relationships (Interest Rate Swaps)2026202520262025
Amount of gain (loss) recognized on derivative in "Accumulated other comprehensive income"
$6,819 $370 $10,119 $(2,327)
Amount of income reclassified from "Accumulated other comprehensive income" into interest expense
$504 $903 $1,513 $2,675 

"Interest expense, net" presented in the Consolidated Statements of Operations and Comprehensive Income, in which the effects of cash flow hedges are recorded, totaled $4.9 million and $14.1 million for the three and nine months ended September 30, 2026, respectively, and $4.3 million and $11.9 million for the three and nine months ended September 30, 2025, respectively.
As of September 30, 2026, the Company also had derivatives in a liability position and did not post any collateral related to these agreements. If the Company had breached any of these provisions as of September 30, 2026, it could have been required to settle its obligations under the agreements of any interest rate swap in a liability position for approximately $0.01 million, which is at their termination value.