Quarterly report pursuant to Section 13 or 15(d)

Long-term Debt

v3.23.3
Long-term Debt
 9 Months Ended
Sep. 30, 2023
Debt Disclosure [Abstract]  
Long-term Debt
11. Long-term Debt:
The summary of long-term debt is as follows:
September 30,
2023		 December 31,
2022
Senior Secured Term Loan Facility due June 2028 (the "2021 Term Loan Facility") $ 879,750  $ 886,500 
ABL Facility —  — 
Total debt 879,750  886,500 
Original issue discount (6,496) (7,472)
Deferred financing costs (3,586) (4,158)
Total debt, net of original issue discount and deferred financing costs 869,668  874,870 
Less: current portion (9,000) (9,000)
Total long-term debt, excluding current portion $ 860,668  $ 865,870 
In February 2023, the Company amended the 2021 Term Loan Facility to replace LIBOR with SOFR as the benchmark interest rate. Following this amendment, the 2021 Term Loan Facility bears interest at an adjusted term SOFR, which includes a credit spread adjustment of 10 basis points (with a 0.50% minimum floor) plus 2.75% per annum (or, depending on the Company’s first lien net leverage ratio, 2.50%). The interest rate on the 2021 Term Loan Facility was 7.97% as of September 30, 2023.
Also in February 2023, the Company amended its senior secured asset-based revolving credit facility (the “ABL Facility”) to replace LIBOR with SOFR as the benchmark interest rate. Following this amendment, the borrowings under the ABL Facility bear interest at a rate equal to an adjusted term SOFR rate or the base rate, which includes a credit spread adjustment of 10 basis points, plus a margin of between 1.25% to 1.75% or 0.25% to 0.75%, respectively. The interest rate on the ABL Facility was 8.75% as of September 30, 2023.
Fair Value of Debt
The fair value of a financial instrument is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. As of September 30, 2023 and December 31, 2022, the fair value of the senior secured term loan facility was $875,351 and $870,986, respectively. The fair value is classified as Level 2 based upon the fair value hierarchy (see Note 4 to these condensed consolidated financial statements for further information on fair value measurements).