|9 Months Ended|
Sep. 30, 2022
|Debt Disclosure [Abstract]|
NOTE 10 – Debt
Credit Agreement Amendment
On June 30, 2022, the Company amended its Revolving Credit and Term Loan Agreement which included 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”) with an initial commitment of $220 million. The amendment, among other things, increased the aggregate total commitment from the original syndicate of lenders plus two additional lenders by approximately $630 million to a total of $1.1 billion, and provides for a $400 million Term Loan and a $700 million Revolver (together, the “Credit Facilities”). In addition, on June 1, 2022, the benchmark interest rate was revised to the secured overnight financing rate (“SOFR”) plus 2.75% for the Revolver and SOFR plus 3.25% for the Term Loan. The maturity date of the Credit Facilities remains unchanged at September 15, 2026.
The Company had outstanding borrowings under the Term Loan of $397.5 million at an interest rate of 5.88% and under the Revolver of $395.0 million at a weighted-average interest rate of 5.46% as of September 30, 2022. The Company had issued letters of credit under the Credit Facilities of $26.1 million, resulting in available borrowing capacity of $278.9 million under the Revolver as of September 30, 2022.
The Company’s outstanding debt consists of the following as of September 30, 2022 and December 31, 2021:
Scheduled future maturities of long-term debt principal amounts are as follows:
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 September 30, 2022 and December 31, 2021, the estimated fair value of the Company’s outstanding debt was approximately $874.2 million and $353.1 million, respectively.
The entire disclosure for long-term debt.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef