v3.26.1
Note 9 - Long-term Debt
 6 Months Ended
Jun. 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  June 30, 2026, we had borrowing capacity of $46.3 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: 

 

  

June 30,

  

December 31,

  

June 30,

 

($ in thousands)

 

2026

  

2025

  

2025

 

Term Facility that matures in 2029 with an effective interest rate of 7.00% as of June 30, 2026, 7.50% as of December 31, 2025 and 7.69% as of June 30, 2025, respectively

 $22,581  $26,762  $30,942 

ABL Facility that matures in 2029:

            

SOFR borrowings with an effective interest rate of 5.51% as of June 30, 2026, 5.62% as of December 31, 2025 and 6.22% as of June 30, 2025, respectively

  100,500   94,300   103,300 

Prime borrowings with an effective interest rate of 7.18% as of June 30, 2026, 7.16% as of December 31, 2025 and 7.94% as of June 30, 2025, respectively

  790   3,321   288 

Total debt

  123,871   124,383   134,530 

Less: Unamortized debt issuance costs

  (1,480)  (1,741)  (2,002)

Total debt, net of debt issuance costs

  122,391   122,642   132,528 

Less: Debt maturing within one year

  (8,361)  (8,361)  (8,361)

Long-term debt

 $114,030  $114,281  $124,167 

 

A schedule of debt payments for the next five years is as follows:

 

   

Debt Payment

 

($ in thousands)

Year

 

Schedule

 
 

2026

 $4,181 
 

2027

  8,361 
 

2028

  8,361 
 

2029

  102,968 
 

Total

 $123,871 

 

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 June 30, 2026, we were in compliance with all credit facility covenants.