v3.26.1
Note 4 - Long-term Debt
 6 Months Ended
Jun. 30, 2026
Notes to Financial Statements  
Debt Disclosure [Text Block]

4.

Long Term Debt

 

As of June 30, 2026 and December 31, 2025, long-term debt consisted of obligations under our 2019 Senior Credit Facility (as defined below), our 5.875% senior notes due 2026 (the “2026 Notes”), our 10.5% senior secured first lien notes due 2029 (the “2029 1L Notes”), our 4.75% senior notes due 2030 (the “2030 Notes”), our 5.375% senior notes due 2031 (the “2031 Notes”), our 9.625% senior secured second lien notes due 2032 (the “2032 2L Notes”) and our 7.25% senior secured first lien notes due 2033 (the “2033 1L Notes”) as follows (in millions):

 

   

June 30,

    

December 31,

  
   

2026

    

2025

  

Long-term debt :

                

Senior Credit Facility:

                

2028 1L Term Loan (matures December 1, 2028)

   $ 739     $ 739  

2026 1L Term Loan

     -       10  

Senior secured first lien notes:

                

2029 1L Notes (matures July 15, 2029)

     1,125       1,125  

2033 1L Notes (matures August 15, 2033)

     845       775  

Senior secured second lien notes:

                

2032 2L Notes (matures July 15, 2032)

     1,150       1,150  

Senior unsecured notes:

                

2026 Notes

     -       2  

2030 Notes (matures October 15, 2030)

     790       790  

2031 Notes (matures November 15, 2031)

     1,218       1,219  

Total outstanding principal, including current portion

     5,867       5,810  

Unamortized deferred loan costs - Senior Credit Facility

     (11 )     (13 )

Unamortized deferred loan costs - 2029 1L Notes

     (7 )     (9 )

Unamortized deferred loan costs - 2030 Notes

     (6 )     (7 )

Unamortized deferred loan costs - 2031 Notes

     (9 )     (10 )

Unamortized deferred loan costs - 2032 2L Notes

     (15 )     (17 )

Unamortized deferred loan costs - 2033 1L Notes

     (15 )     (15 )

Unamortized premium - 2032 Notes

     4       5  

Less current portion

     -       (2 )

Long-term debt, less current portion and deferred financing costs

   $ 5,808     $ 5,742  
                 

Revolving Credit Facility:

                

Revolving Credit Facility commitment

   $ 750     $ 750  

Undrawn outstanding letters of credit

     (5 )     (5 )

Borrowing availability under Revolving Credit Facility

   $ 745     $ 745  

 

2026 Refinancing Activities. On March 31, 2026, we entered into a sixth amendment (the “Sixth Amendment”) to our Fifth Amended and Restated Credit Agreement (as amended, including by the Sixth Amendment, the “2019 Senior Credit Facility”) which amended and restated the 2019 Senior Credit Facility in its entirety. The Sixth Amendment did not change the commitments under the revolving credit facility, the principal amounts of the term loans, or the stated maturities under our 2019 Senior Credit Facility. No new borrowings were incurred in connection with the Sixth Amendment.

 

On June 30, 2026, we issued $70 million in additional 2033 1L Notes in a private placement transaction. The proceeds were used to: (i) fund $40 million in purchase price consideration at the first closing of our acquisition of American Spirit Media, LLC (on July 1, 2026, described in Note 15, “Subsequent Events”) and (ii) fund our repurchase of an aggregate of 50,000 shares of Series A Perpetual Preferred Stock of the Company (“Series A Perpetual Preferred Stock”) for $30 million. See Note 7, “Preferred Stock.”

 

The revolving credit facility bears interest, based on Term SOFR (as defined in the 2019 Senior Credit Facility) plus an applicable margin ranging from 1.75%–2.75% or the Base Rate (as defined below) plus an applicable margin ranging from 0.75%–1.75%, in each case based on the first lien net leverage ratio. We are required to pay a commitment fee on the average daily unused portion of the revolving credit facility, which rate ranges from 0.250% to 0.400% per annum, based on the first lien net leverage ratio. The term loans bear interest, at either Term SOFR plus an applicable margin or the Base Rate plus an applicable margin. “Base Rate” is defined as the greatest of (i) the administrative agent’s prime rate, (ii) the overnight federal funds rate plus 0.50% and (iii) Term SOFR for a one month tenor in effect on such day plus 1.00%. Our applicable margin with respect to the term loans is 3.00% for the 2021 term loan (plus a credit spread adjustment with respect to Term SOFR Loans with an interest period of one, three or six-months, respectively) and 2.00% for Base Rate borrowings.

 

As of June 30, 2026, the interest rate on the balance outstanding under the 2028 term loan was 6.7%.

 

For all interest-bearing debt obligations, we made interest payments of approximately $222 million and $230 million during the six-months ended June 30, 2026 and 2025, respectively. During each of the six-months ended June 30, 2026 and 2025, we capitalized less than $1 million of interest payments related to Assembly Atlanta.

 

As of June 30, 2026, the aggregate minimum principal maturities of our long-term debt for the remainder of 2026 and the succeeding five years were as follows (in millions):

 

   

Minimum Principal Maturities

  

Year

  

Senior 1L

Credit Facility

    

2029 1L

Notes

    

2030 Notes

    

2031 Notes

    

2032 2L

Notes

    

2033 1L

Notes

    

Total

  

Remainder of 2026

   $ -     $ -     $ -     $ -     $ -     $ -     $ -  

2027

     -       -       -       -       -       -       -  

2028

     739       -       -       -       -       -       739  

2029

     -       1,125       -       -       -       -       1,125  

2030

     -       -       790       -       -       -       790  

2031

     -       -       -       1,218       -       -       1,218  

Thereafter

     -       -       -       -       1,150       845       1,995  

Total

   $ 739     $ 1,125     $ 790     $ 1,218     $ 1,150     $ 845     $ 5,867  

 

As of June 30, 2026,  there were no significant restrictions on the ability of our subsidiaries to distribute cash to us or to the guarantor subsidiaries. Our 2019 Senior Credit Facility contains affirmative and restrictive covenants with which we must comply. The 2029 1L Notes, 2030 Notes, 2031 Notes, the 2032 2L Notes and 2033 1L Notes also include covenants with which we must comply. As of June 30, 2026 and December 31, 2025, we were in compliance with all required covenants under all our debt obligations.