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Debt
 3 Months Ended
Mar. 31, 2024
Debt Disclosure [Abstract]  
Debt
NOTE 9 — Debt
Credit Facility
On August 4, 2023, the Company amended its senior secured credit facility, dated February 28, 2022, with JPMorgan Chase Bank, N.A. (as amended, the 2022 Credit Facility) to increase borrowing capacity by $150 million to a total of $650 million. The 2022 Credit Facility consists of a $350 million revolving credit facility, a term loan facility of up to $100 million, and a delayed draw term loan facility of up to $200 million. The 2022 Credit Facility also includes sublimits for letters of credit and swingline loans of up to $50 million and $15 million, respectively. The 2022 Credit Facility expires on February 28, 2027 (the Maturity Date).
On February 20, 2024, the Company drew $150 million on its delayed draw term loan facility before this portion expired on February 28, 2024. The remaining $50 million of the delayed draw term loan is available until February 2025.
Interest on borrowings under the 2022 Credit Facility is based on (a) the Alternate Base Rate plus an applicable margin, or (b) the Adjusted Term SOFR plus an applicable margin, and is payable in accordance with the selected interest rate period (at least quarterly) and upon maturity. Principal payments for the term loans are required on a quarterly basis in accordance with an amortization schedule up through and including the Maturity Date.    
The Company is required to pay a commitment fee on a quarterly basis, at a per annum rate of between 0.20% and 0.45% (depending on the Company’s maximum net lease-adjusted total leverage ratio) based on the (i) average daily unused portion of the revolving credit facility, and (ii) the daily undrawn amount of the delayed draw term loan facility. These fees are recorded as interest expense on the Company’s condensed consolidated statements of operations.
The 2022 Credit Facility contains financial covenants that require the Company to not exceed a maximum net lease-adjusted total leverage ratio and maintain a minimum fixed charge coverage ratio. The 2022 Credit Facility also contains certain negative covenants that, among other things, limit the Company’s ability to incur additional debt, grant liens on assets, merge with or acquire other companies, make other investments, dispose of assets, and make restricted payments. Obligations under the 2022 Credit Facility are guaranteed by Dutch Bros OpCo and certain of its subsidiaries, and secured by a first priority perfected security interest in substantially all of the assets of the guarantors.
As of March 31, 2024, no amounts were outstanding on the Company’s revolving credit facility, and $349.2 million was available for borrowing, net of a $0.8 million letter of credit, and approximately $244.1 million of principal was outstanding on the term loan facilities. The term loans bear interest at approximately 6.93% as of March 31, 2024, excluding the impact from the Company’s interest rate swap. The Company was in compliance with its financial covenants as of that date.
Long-Term Debt
The Company’s long-term debt consisted of the following for the periods presented:
(in thousands)March 31, 2024December 31, 2023
Term loans under credit facility
$244,063 $95,625 
Finance obligation1
3,022 3,022 
Unsecured note payable387 415 
Total debt247,472 99,062 
Less: loan origination fees(1,283)(1,396)
Less: current portion(12,618)(4,491)
Total long-term debt, net of current portion$233,571 $93,175 
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1    Represents failed sale-leaseback arrangements.
Future annual maturities of long-term debt as of March 31, 2024 are as follows:
(in thousands)
Remainder of 2024 $9,463 
2025 17,311 
2026 32,943 
2027 184,733 
2028 — 
Thereafter 3,022 
Total$247,472