v3.26.3
Long-Term Debt
 9 Months Ended
Sep. 30, 2026
Debt Disclosure [Abstract]  
Long-Term Debt Long-Term Debt
The carrying value of debt presented within current portion of indebtedness and long-term indebtedness, net of debt discounts, on the condensed consolidated balance sheets as of September 30, 2026 and December 31, 2025 includes the following components:
As of September 30, 2026As of December 31, 2025
(amounts in thousands)
2023 Term Loan Initial Draw - January 18, 2023$— $200,000 
Exit fee on 2023 Term Loan - January 18, 2023— 2,000 
2023 Term Loan Subsequent Draw - March 5, 2024— 200,000 
Exit fee on 2023 Term Loan - March 5, 2024— 2,000 
2026 Term Loan Initial Draw - April 1, 2026400,000 — 
Less: Unamortized debt discounts and financing costs(6,998)(25,550)
Net debt$393,002 $378,450 
On April 1, 2026, the Company fully repaid the 2023 Term Loan (as defined below), originally maturing in 2028, and entered into the 2026 Term Loan (as defined below), which matures in 2031.
Term Loan
On April 1, 2026, the Company entered into a financing agreement (the “2026 Financing Agreement”) with certain lenders, including funds affiliated with Blackstone Credit and Blackstone Holdings Finance Co. LLC (collectively, “Blackstone”), and Blue Owl Capital Corporation (“Blue Owl,” and collectively with Blackstone, the “2026 Lenders”), with Blue Owl serving as administrative agent. Pursuant to the 2026 Financing Agreement, the 2026 Lenders agreed to lend the Company up to an aggregate principal amount of $400.0 million (the “2026 Term Loan”), of which $400.0 million was funded at closing. The 2026 Financing Agreement also provides for a committed delayed draw term loan facility of up to $300.0 million, available to be drawn in one or more tranches through August 2027 solely to fund permitted acquisitions (the “Delayed Draw Facility”), and an uncommitted incremental facility of up to $500.0 million. The 2026 Term Loan matures on April 1, 2031, requires no scheduled principal amortization, and is payable interest-only quarterly, with the entire principal balance due at maturity. As of September 30, 2026, the Company has not drawn down from the Delayed Draw Facility or the uncommitted incremental facility.
The 2026 Term Loan bears interest, at the Company’s election, at either the Term secured overnight financing rate (“Term SOFR”) plus 5.00% or the Base Rate plus 4.00%. The Base Rate is a rate per annum equal to the greatest of (a) the prime rate; (b) the Federal Funds effective rate plus 0.50%; (c) one-month Term SOFR plus 1.00%; and (d) 2.00% per annum. The Company elected the Term SOFR option upon funding, and elected to continue with the Term SOFR option for the upcoming interest period as of September 30, 2026. As of September 30, 2026, the interest rate in effect was 8.7%. The effective interest rate for the 2026 Term Loan is 9.2%.
In connection with the 2026 Term Loan, the Company incurred debt issuance costs of $7.6 million, consisting of fees paid to the 2026 Lenders and third-party costs. These costs were recorded as a direct deduction from the face amount of the 2026 Term Loan and are being amortized to interest expense over the term of the loan using the effective interest method.
Upon prepayment, the Company is subject to a prepayment penalty based on the timing of repayment. If an event of default occurs and is continuing, the administrative agent may, at the direction of the required lenders, declare all amounts outstanding under the 2026 Financing Agreement immediately due and payable.
The Company’s obligations under the 2026 Financing Agreement are secured by a first-priority lien on substantially all of the assets of the Company and its subsidiaries. The 2026 Financing Agreement includes customary representations and warranties, affirmative and negative covenants, as well as a financial covenant requiring maintenance of minimum qualified cash (unrestricted cash or marketable securities in accounts subject to control agreements) of $50.0 million tested as of the last day of each fiscal quarter. As of September 30, 2026, the Company was in compliance with all covenants under the 2026 Financing Agreement.
On January 18, 2023, the Company entered into the 2023 Term Loan Agreement with OrbiMed Royalty & Credit Opportunities III, LP, OrbiMed Royalty & Credit Opportunities IV, LP (collectively, “OrbiMed”), and Braidwell Transaction Holdings LLC (“Braidwell”, and collectively with OrbiMed, the “2023 Lenders”). Pursuant to the 2023 Term Loan Agreement, the Company issued senior, secured promissory notes by which the 2023 Lenders agreed to lend the Company up to an aggregate principal amount of $400.0 million (the “2023 Term Loan”), $200.0 million of which was received by the Company upon issuance (the “2023 Initial Draw”), and the remaining $200.0 million was received by the Company in March 2024 (the “Delayed Draw”).
The proceeds of the 2026 Term Loan, together with cash on hand, were used to repay the 2023 Term Loan in full on April 1, 2026. Because the 2023 Term Loan was repaid using borrowings from new lenders, the transaction was accounted for as an extinguishment of debt. The Company recognized a loss on extinguishment of debt of $25.2 million, which includes an exit fee and repayment premiums. The loss is presented as other income (expense), net within the condensed consolidated statements of operations and comprehensive income (loss).
Interest Expense
The components of interest expense associated with the Company’s long-term indebtedness, excluding finance leases, are as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2026202520262025
(amounts in thousands)
Debt discount amortization$312 $2,463 $3,234 $12,163 
Interest expense8,926 11,036 28,016 33,311 
Interest expense on long-term indebtedness, excluding finance leases$9,238 $13,499 $31,250 $45,474