Quarterly report pursuant to Section 13 or 15(d)

Debt

v3.22.2
Debt
 6 Months Ended
Jun. 30, 2022
Debt Disclosure [Abstract]  
Debt
9.
Debt

Substantially all of the Company’s debt is carried at outstanding principal balance, less debt issuance costs and any unamortized discount or premium. To the extent that the Company modifies the debt arrangements, all unamortized costs from borrowings are deferred and amortized over the term of the new arrangement, where applicable.

The following table is a summary of the Company’s outstanding debt:

 

 

June 30, 2022

 

 

December 31, 2021

 

Term debt

 

 

 

 

 

 

7-year term loan facility, periodic interest and quarterly principal payments, Adjusted Term SOFR + 3.00% as of June 30, 2022, LIBOR + 3.00% as of December 31, 2021, matures September 1, 2027

 

$

1,575,141

 

 

$

1,578,972

 

Senior Secured Notes

 

 

 

 

 

 

8-year senior secured notes, semi-annual interest payments, 4.38%, matures February 1, 2030

 

 

399,269

 

 

 

—

 

Revolving debt

 

 

 

 

 

 

5-year revolving loan facility, periodic interest payments, Adjusted Term SOFR + up to 3.00% as of June 30, 2022, LIBOR + up to 3.00% as of December 31, 2021, plus commitment fees up to 0.50%, matures July 26, 2026

 

 

395

 

 

 

387

 

Premium financing notes

 

 

 

 

 

 

Commercial notes, periodic interest and principal payments, 2.49%, expire June 1, 2023

 

 

4,614

 

 

 

—

 

Commercial notes, periodic interest and principal payments, 1.66%, expired June 1, 2022

 

 

—

 

 

 

1,656

 

Commercial notes, periodic interest and principal payments, 1.66%, expire July 15, 2022

 

 

—

 

 

 

745

 

Commercial notes, periodic interest and principal payments, 1.66%, expire July 21, 2022

 

 

—

 

 

 

3,973

 

Finance lease obligation

 

 

75

 

 

 

96

 

Units subject to mandatory redemption

 

 

4,482

 

 

 

4,267

 

Total debt

 

$

1,983,976

 

 

$

1,590,096

 

Less current portion

 

 

(28,949

)

 

 

(23,469

)

Long term debt

 

$

1,955,027

 

 

$

1,566,627

 

Term Loan

 

The original principal of the Term Loan was $1,650.0 million. As of June 30, 2022, $1,621.1 million of the principal was outstanding and $0.2 million of interest was accrued. As of December 31, 2021, $1,629.4 million of the principal was outstanding and $0.2 million of interest was accrued. Unamortized deferred issuance costs on the Term Loan were $46.2 million and $50.6 million as of June 30, 2022 and December 31, 2021, respectively.

Revolving Credit Facility

As the Revolving Credit Facility had not been drawn on as of June 30, 2022, the deferred issuance costs related to the facility are included in Other non-current assets in the Consolidated Balance Sheets. The Company pays a commitment fee on undrawn amounts under the facility of 0.25% - 0.50%. The Company accrued $0.4 million of unpaid commitment fees related to the Revolving Credit Facility as of June 30, 2022 and December 31, 2021, which was included in Short-term debt and current portion of long-term debt in the Consolidated Balance Sheets.

Transition from LIBOR to SOFR

On April 29, 2022, the Company entered into a fourth amendment to the Credit Agreement on its Term Loan and Revolving Credit Facility to transition from using the Eurocurrency Rate (LIBOR) to a benchmark replacement of Adjusted Term SOFR plus a credit spread adjustment of 10 basis points, 15 basis points, or 25 basis points for the one-month, three-month, or six-month borrowing periods, respectively. As discussed in Note 2, Summary of Significant Accounting Policies, the Company adopted ASU 2020-04 in the second quarter of 2022. The Company has elected the expedient that allows for this contract modification to be treated as not substantial and to account for any related changes on a prospective basis from the modification date.

Senior Secured Notes

On February 3, 2022, the LLC issued $400.0 million of senior secured notes. The notes have a 4.38% interest rate and will mature on February 1, 2030. As of June 30, 2022, unamortized deferred issuance costs and discount were $7.9 million and the Company accrued $7.2 million of interest related to these notes.