Debt |
3 Months Ended | ||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||
| Debt Disclosure [Abstract] | |||||||||||||||||||||
| Debt | Debt Our First Lien Credit Agreement (as amended from time to time, the "Credit Agreement") provides for (i) a $700.0 million term loan maturing on October 10, 2025 (“First Lien Term Loan Facility”); and (ii) a revolving credit facility for up to $100.0 million (the “Revolving Credit Facility”). On February 20, 2024, we amended our Revolving Credit Facility to extend its maturity date from October 11, 2024 to July 11, 2025. As of March 31, 2024, there were no changes to the terms of our First Lien Term Loan Facility and Revolving Credit Facility as disclosed in Note 12 to our consolidated financial statements included in our 2023 10-K. The effective interest rate on the First Lien Term Loan Facility for the three months ended March 31, 2024 and 2023 was 8.77% and 7.81%, respectively. We had no borrowings against the Revolving Credit Facility as of March 31, 2024 and December 31, 2023. We had outstanding letters of credit issued against the Revolving Credit Facility for $8.3 million and $9.2 million as of March 31, 2024 and December 31, 2023, respectively, which reduces our available borrowings under the Revolving Credit Facility. Our debt balance is as follows:
The estimated fair value of our debt approximated its carrying value as of March 31, 2024 and December 31, 2023, based on inputs categorized as Level 2 in the fair value hierarchy. Under the Credit Agreement, we are subject to a financial covenant requiring maintenance of a First Lien Net Leverage Ratio (as defined in the Credit Agreement) not to exceed 8.2 to 1.0 only in the event that the amounts outstanding under the Revolving Credit Facility exceed a specified percentage of commitments under the Revolving Credit Facility, and other nonfinancial covenants under the Credit Agreement. At March 31, 2024, we were in compliance with our covenants.
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