Quarterly report pursuant to Section 13 or 15(d)

Debt

v3.22.1
Debt
 3 Months Ended
Mar. 31, 2022
Debt Disclosure [Abstract]  
Debt
NOTE 10 – Debt
The Company’s outstanding debt consists of the following as of March 31, 2022 and December 31, 2021:
(in thousands)
 March 31,
2022		 December 31,
2021
New Credit Agreement - Term Loan
 $ 217,250  $ 218,625 
Wilmington Trust – 4.47% Term Note
 60,828  60,828 
Wilmington Trust – 3.75% Term Note
 71,123  72,542 

349,201  351,995 
Less unamortized debt issuance costs
 (8,827) (9,221)
Long-term debt less debt issuance costs
 340,374  342,774 
Less current maturities, net
 (12,606) (11,378)
Total long-term debt
 $ 327,768  $ 331,396 
Fair Value of Debt
The Company estimates the fair value of fixed-rate term loans based on quoted market yields for similarly rated debt instruments in an active market, which are considered a Level 2 input in the fair value hierarchy. As of March 31, 2022 and December 31, 2021, the estimated fair value of the Company’s outstanding debt was approximately $328.7 million and $353.1 million, respectively.
New Credit Facilities
On the Closing Date and upon consummation of the Business Combinations, Archaea Energy Operating LLC, a Delaware limited liability company (f/k/a LFG Buyer Co, LLC) (“Archaea Borrower”), entered into a $470 million Revolving Credit and Term Loan Agreement (the “New Credit Agreement”) with a syndicate of lenders co-arranged by Comerica Bank. The New Credit Agreement provides for a senior secured revolving credit facility (the “Revolver”) with an initial commitment of $250 million and a senior secured term loan credit facility (the “Term Loan” and, together with the Revolver, the “Facilities”) with an initial commitment of $220 million. Pursuant to the New Credit Agreement, Archaea Borrower has the ability, subject to certain conditions, to draw upon the Revolver on a revolving basis up to the amount of the Revolver then in effect. On the Closing Date, Archaea Borrower received total proceeds of $220 million under Term Loan. Archaea Borrower had outstanding borrowings under the Term Loan of $217.3 million at an interest rate of 3.48% as of March 31, 2022. As of March 31, 2022, the Company had issued letters of credit under the New Credit Agreement of $19.9 million and there were no borrowings under the Revolver, resulting in available borrowing capacity of $230.1 million under the Revolver.