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DEBT
 12 Months Ended
Dec. 31, 2022
DEBT  
DEBT

10.DEBT

Credit Agreement

On March 8, 2022, the Company entered into the Second Amendment to Credit Agreement (the “Second Amendment”), with a banking syndicate, which amended the previous credit agreement entered into in March 2020 (the “Previous Credit Agreement”), providing for, among other modifications, (i) a new term loan in the aggregate amount of $50,000 (the “Term Loan”); (ii) an extension of the maturity date of the revolving facility (“the Line of Credit”) from March 2025 to March 2027; (iii) an increase in the Line of Credit commitment from $100,000 to $200,000 (iv) the Company’s option to select an applicable interest rate at either the bank base rate plus an applicable margin (the “New Base Rate Option”) or Secured Overnight Financing Rate (“SOFR”) plus an applicable margin (the “SOFR Option”); (v) modifications to the financial covenant performance levels which determine applicable margins; and (vi) modifications to certain covenants and events of default. Net proceeds from the Term Loan shall be used to fund ongoing working capital, capital expenditures, permitted distributions, permitted acquisitions and general corporate purposes of the Company and its subsidiaries.

The Company paid $983 in financing costs in connection with the Second Amendment, which will be amortized over the term of the loan. The Company wrote off $370 in deferred financing fees pertaining to the Previous Credit Agreement associated with a bank exiting the Second Amendment. The remaining balance of deferred financing costs pertaining to the remaining bank associated with the Previous Credit Agreement of $277 will be amortized over the term of the Second Amendment. The portion of the deferred financing costs associated with the Line of Credit and the Term Loan are reflected in other assets and as a reduction of the Term Loan, respectively, in the consolidated balance sheet at December 31, 2022.

The Second Amendment is collateralized by nearly all of the assets of the Company and contains financial and operating covenants. The Company was in compliance with these covenants at December 31, 2022. The Second Amendment limits the declaration or payment of certain dividends, not to exceed an aggregate of $2,000.

Term Loan

The Term Loan requires quarterly principal payments over five years, with a balloon payment due on March 8, 2027. The interest rate on the Term Loan was 5.42% at December 31, 2022 as the Company selected the SOFR Option. Term Loan outstanding amounts are reported in the current portion of long-term debt and long-term debt, net of current portion, in the consolidated balance sheets. Outstanding borrowings under the Term Loan were $49,063 at December 31, 2022.

Line of Credit

The Line of Credit expires in March 2027. The Company is required to pay a quarterly fee on the difference between the $200,000 allowed maximum borrowings and the unpaid principal balance outstanding under the line at the applicable rate. At December 31, 2022, the New Base Rate Option and SOFR Option applicable to the Line of Credit borrowings were 7.50% and 5.40%, respectively. There were no outstanding borrowings under the Line of Credit at December 31, 2022.

Debt maturities under the Second Amendment for the next five years and thereafter are as follows as of December 31, 2022:

​

​

​

​

2023

​

$

2,188

2024

​

​

2,500

2025

​

​

2,500

2026

​

​

3,437

2027 and thereafter

​

​

38,438

Total Debt

​

$

49,063

​

Previous Credit Agreement

On March 31, 2020, the Company entered into the Previous Credit Agreement with a bank consisting of a $175,000 term loan (the “Previous Term Loan”) and a $100,000 committed line of credit (the “Previous Line of Credit”).

Net proceeds from the Previous Term Loan, after payment of financing fees of $2,904 and repayment of aggregate amounts outstanding under a previous credit agreement of $61,656, were used to fund a portion of the $123,185 distribution made to the stockholders on May 29, 2020 (see Note 11).

A portion of the Offering proceeds was used to repay the $175,000 Previous Term Loan in full on July 31, 2020. The Company received a refund of $468 of financing fees as a result of repayment of the Previous Term Loan within 90 days of execution of the Previous Credit Agreement, which was recorded as a reduction of deferred financing costs associated with the Previous Term Loan. The Company wrote off the remaining balance of deferred financing costs associated with the Previous Term Loan of $1,174, which was recorded as interest expense in the consolidated statement of comprehensive loss for the year ended December 31, 2020.

The Previous Line of Credit and had no outstanding borrowings at either December 31, 2021 or 2020. The Company had the option to select an applicable interest rate at either the bank base rate plus an applicable margin (the “Base Rate Option”) or the LIBOR plus an applicable margin (the “LIBOR Option”). The applicable margins were determined by certain financial covenant performance as defined in the Previous Credit Agreement. At December 31, 2021, the Base Rate Option and LIBOR Option applicable to Previous Line of Credit borrowings were 3.25% and 2.00%, respectively.

The Previous Credit Agreement was collateralized by nearly all of the assets of the Company and contains financial and operating covenants. The Company was in compliance with all financial covenants at December 31, 2021.