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v3.25.2

Debt | 6 Months Ended
--- | ---
Jun. 30, 2025
Debt Instruments [Abstract] |
Debt | Debt Debt consists of the following ($ in thousands):
| June 30, |  | December 31,
| 2025 |  | 2024
Revolving credit facility - unsecured | $ | 378,000 |  |  | $ | 331,200 |
Bank term loan - unsecured | 200,000 |  |  | 200,000 |
2031 Senior Notes - unsecured, net of discount of $1,796 and $1,956, respectively | 398,204 |  |  | 398,044 |
Private placement notes - unsecured | 150,000 |  |  | 150,000 |
Fannie Mae term loans - secured, non-recourse | — |  |  | 75,815 |
Unamortized debt issuance costs | (7,369) |  |  | (9,018) |
Total debt, net | $ | 1,118,835 |  |  | $ | 1,146,041 |
A summary of the aggregate principal maturities of our outstanding debt as of June 30, 2025 follows ($ in thousands):
Remainder of 2025 | $ | 250,000 |
2026 | — |
2027 | 100,000 |
2028 | 378,000 |
2029 | — |
2030 | — |
Thereafter | 400,000 |
Total principal amounts of debt | 1,128,000 |
Less: Unamortized discount | (1,796) |
Less: Unamortized debt issuance costs | (7,369) |
Total debt, net | $ | 1,118,835 |
Revolving Credit Facility and Bank Term Loan We have a $700.0 million unsecured revolving credit facility (the “Credit Facility”), which was amended and restated in October 2024 to extend the maturity date from March 2026 to October 2028, which may be further extended by us pursuant to (i) one or both of the two six-month extension options or (ii) one 12-month extension option. Borrowings under the Credit Facility bear interest, at our election, at one of the following (a) Term Secured Overnight Financing Rate (“SOFR”) (plus a credit spread adjustment) plus a margin ranging from 0.725% to 1.40%, (b) Daily SOFR (plus a credit spread adjustment) plus a margin ranging from 0.725% to 1.40% or (c) the base rate plus a margin ranging from 0.00% to 0.40%. In each election, the actual margin is determined according to our credit ratings. The base rate means, for any day, a fluctuating rate per annum equal to the highest of (x) the agent’s prime rate, (y) the federal funds rate on such day plus 0.50% or (z) the adjusted Term SOFR for a one-month tenor in effect on such day plus 1.00%. In addition, the Credit Facility requires a facility fee equal to 0.125% to 0.30%, based on our credit rating on the $700.0 million committed capacity, without regard to usage. As of June 30, 2025, we had $322.0 million available to draw on the Credit Facility, subject to usual and customary covenants. Among other stipulations, the credit agreement requires that we maintain certain financial ratios within limits set by our creditors. As of June 30, 2025, we were in compliance with these ratios. We have a $200.0 million unsecured term loan (the “2025 Term Loan”) that bears interest at a variable rate which is SOFR-based with a margin determined according to our credit ratings plus a 0.10% credit spread adjustment. In April 2025, we exercised one of our two six-month options to extend the maturity date to December 2025. Concurrently with the amendment and restatement of the Credit Facility, we amended the 2025 Term Loan to, among other things, modify the representations, covenants, financial covenants, and events of default to align with the same provisions in the Credit Facility. Pinnacle Bank is a participating member of our banking group. A member of our board of directors, who became chairman of our board of directors effective in January 2025, is also the chairman of the board of directors of Pinnacle Financial Partners, Inc., the holding company for Pinnacle Bank. Our local banking transactions are conducted primarily through Pinnacle Bank. 2031 Senior Notes In January 2021, we issued $400.0 million in aggregate principal amount of 3.00% unsecured senior notes that mature in February 2031 and require semi-annual interest payments (the “2031 Senior Notes”). The 2031 Senior Notes were sold at an issue price of 99.196% of face value before the underwriters’ discount. The 2031 Senior Notes are subject to affirmative and negative covenants, including financial covenants with which we were in compliance as of June 30, 2025. Private Placement Notes Our unsecured private placement notes outstanding as of June 30, 2025, which require interest only payments up to the respective maturity dates, are summarized below ($ in thousands):
|  |  |  | Fixed Annual |  | Principal
Origination |  | Maturity |  | Interest Rate |  | Outstanding
November 2015 |  | November 2025 |  | 4.33% |  | $ | 50,000 |
January 2015 |  | January 2027 |  | 4.51% |  | 100,000 |
Total private placement notes |  |  |  |  |  | $ | 150,000 |
Covenants pertaining to the private placement notes are generally conformed with those governing our Credit Facility, except for specific debt-coverage ratios that are more restrictive. Our private placement notes include a provision that increases the fixed annual interest rate if any rating agency lowers the credit rating on our senior unsecured debt below investment grade and our compliance leverage increases to 50.0% or more. Fannie Mae Term Loans In the second quarter of 2025, we repaid all of our outstanding Fannie Mae term loans, which totaled $75.7 million. Interest Expense A summary of the components of interest expense follows ($ in thousands):
| Three Months Ended |  | Six Months Ended
| June 30, |  | June 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Interest expense at contractual rates | $ | 14,062 |  |  | $ | 14,029 |  |  | $ | 27,421 |  |  | $ | 28,116 |
Capitalized interest | — |  |  | (48) |  |  | — |  |  | (87) |
Amortization of debt issuance costs and discount |  |  |  |  |  |  |
and other | 939 |  |  | 873 |  |  | 1,917 |  |  | 1,694 |
Total interest expense | $ | 15,001 |  |  | $ | 14,854 |  |  | $ | 29,338 |  |  | $ | 29,723 |

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 8A -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-8A Reference 2: http://www.xbrl.org/2003/role/disclosureRef 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