v3.26.3
Note 9 - Long-term Debt
 9 Months Ended
Sep. 30, 2026
Notes to Financial Statements  
Debt Disclosure [Text Block]

9. LONG-TERM DEBT

 

On April 26, 2024, we refinanced our previous term debt and asset-based lending credit facilities by amending and restating our credit agreement with Bank of America, N.A., as agent, sole lead arranger and sole bookrunner and other lenders party thereto (the "ABL Agreement"). The ABL Agreement consists of a $175.0 million asset-based lending credit facility (the "ABL Facility") and a $50.0 million term loan facility (the "Term Facility"). The ABL Agreement is collateralized by a first-lien on substantially all of the Company's domestic assets. The ABL Facility includes a separate first in, last out (FILO) tranche, which allows the Company to borrow at higher advance rates on eligible accounts receivable and inventory balances. As of  September 30, 2026, we had borrowing capacity of $67.5 million under the ABL Facility. The Term Facility provides for monthly principal payments until the date of maturity, at which date the remaining principal balance is due.

 

 

Loans under the ABL Agreement bear interest at a variable rate equal to either (i) the Base Rate (as calculated in the ABL Agreement) or (ii) Term SOFR (as calculated in the ABL Agreement), plus in each case an interest margin determined by the Company's average daily availability as a percentage of the aggregate amount of revolving commitments for revolving loans and term loans, with a range of Base Rate margins and term SOFR margins, as set forth of the following chart: 

 

Revolver Pricing Level

 

 

Average Availability as a Percentage of Commitments

 

Term SOFR Term Loan

  

Base Rate Term Loan

  

Term SOFR Revolver Loan

  

Base Rate Revolver Loan

  

Term SOFR FILO Loan

  

Base Rate FILO Loan

 

I

 

> 66.7%

  2.75%  1.50%  1.25%  0.00%  1.75%  0.50%

II

 

>33.3% and < or equal to 66.7%

  3.00%  1.50%  1.50%  0.00%  2.00%  0.50%

III

 

< or equal to 33.3%

  3.25%  1.75%  1.75%  0.25%  2.25%  0.75%

 

In connection with the ABL Agreement, we paid certain fees that were capitalized and will be amortized over the life of such agreement. 

 

Current and long-term debt under the ABL Agreement consisted of the following: 

 

  

September 30,

  

December 31,

  

September 30,

 

($ in thousands)

 

2026

  

2025

  

2025

 

Term Facility that matures in 2029 with an effective interest rate of 7.25% as of September 30, 2026, 7.50% as of December 31, 2025 and 7.67% as of September 30, 2025, respectively

 $20,491  $26,762  $28,852 

ABL Facility that matures in 2029:

            

SOFR borrowings with an effective interest rate of 5.77% as of September 30, 2026, 5.62% as of December 31, 2025 and 6.06% as of September 30, 2025, respectively

  95,000   94,300   110,800 

Prime borrowings with an effective interest rate of 7.31% as of September 30, 2026, 7.16% as of December 31, 2025 and 7.71% as of September 30, 2025, respectively

  1,886   3,321   1,265 

Total debt

  117,377   124,383   140,917 

Less: Unamortized debt issuance costs

  (1,349)  (1,741)  (1,872)

Total debt, net of debt issuance costs

  116,028   122,642   139,045 

Less: Debt maturing within one year

  (8,361)  (8,361)  (8,361)

Long-term debt

 $107,667  $114,281  $130,684 

 

The schedule of debt payments remaining is as follows:

 

   

Debt Payment

 

($ in thousands)

Year

 

Schedule

 
 

2026

 $2,090 
 

2027

  8,361 
 

2028

  8,361 
 

2029

  98,565 
 

Total

 $117,377 

 

Credit Facility Covenants

 

Our ABL Facility and Term Facility require us to maintain a minimum fixed charge coverage ratio, as defined in the ABL Agreement. The ABL Facility and Term Facility also contain restrictions on the amount of dividend payments and share repurchases. As of September 30, 2026, we were in compliance with all credit facility covenants.