v3.25.4
Interest Expense
 12 Months Ended
Dec. 31, 2025
Interest and Debt Expense [Abstract]  
Interest Expense Interest Expense
The components of interest expense are as follows:
(in thousands)202520242023
Interest incurred on debt$89,974 $68,971 $56,219 
Accretion of original issue discount 5,053 2,163 2,524 
Amortization of debt issuance costs2,738 3,193 4,631 
Debt modification costs6,292 18,370 — 
Amortization of interest rate swap deferred gains— (7,384)(5,480)
Unrealized loss on termination of de-designated interest rate swap— — 7,111 
Realized gain on termination of de-designated interest rate swap— — (6,918)
Total interest expense$104,057 $85,313 $58,087 

The financing transactions entered in 2024 (described in further detail in Note 5, “Debt and Liquidity”) were accounted for as a modification of the existing debt under ASC 470-50, Debt—Modifications and Extinguishments.
As a result, in 2024, the Company incurred $37.3 million of fees and expenses directly attributable to the modification. Of these costs, $18.4 million related to third-party costs was expensed as incurred and is included in Interest expense on the Consolidated Statements of Operations and $18.9 million related to lender fees was capitalized as debt issuance costs and is being amortized over the remaining term of the related debt.
The Company incurred $6.3 million of fees and expenses related to post-closure costs attributable to the modification, which were expensed as incurred in 2025.
In June 2023, the net proceeds from the issuance of the Existing 9.875% Notes were used to repay the $433.7 million of principal outstanding on the 2018 Term Loan Facility. The repayment of the 2018 Term Loan Facility was accounted for as a debt extinguishment and triggered $1.2 million of accelerated accretion of the original issue discount and $1.9 million of accelerated amortization of debt issuance costs. The Existing 9.875% Notes were accounted for as new debt and the related discount and debt issuance costs were deferred.
In connection with the repayment of the 2018 Term Loan Facility in June 2023, we terminated the outstanding interest rate swap contracts that were in place to fix the cash flows associated with the risk in variability in the one-month USD London Interbank Offered Rate (“USD LIBOR”) for the 2018 Term Loan Facility. As a result of the swaps termination, we recorded in interest expense realized gains of $6.9 million relative to our de-designated swap and we deferred realized gains of $13.5 million in accumulated other comprehensive loss (“AOCL”) in connection with our designated swap. The gains deferred
into AOCL for the designated swap were amortized into interest expense through August 2024, consistent with the term of the discontinued cash-flow hedging relationship.
The Existing 9.875% Notes and the New 9.875% Notes carry fixed interest rates of 9.875%. The Existing 4.625% Notes and the New 4.625% Notes carry fixed interest rates of 4.625%. The Initial First Lien Term Loan had an effective interest rate of 9.86% as of December 31, 2025. The Company pays a ticking fee associated with the undrawn Delayed Draw Commitments in an amount equal to 3.75% per annum.
See Note 5, “Debt and Liquidity” for details of our debt.