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Debt
 6 Months Ended
Jun. 30, 2023
Debt Disclosure [Abstract]  
Debt

Note 7. Debt

 

The Company’s debt is comprised of the following:

 

   June 30, 2023   December 31, 2022 
Revolving lines of credit  $421   $329 
Finance lease   396    395 
Senior Secured Credit Facility   172,500    172,500 
Less: Deferred cost of financing   (3,669)   (3,740)
Total obligations under borrowing arrangements   169,648    169,484 
Less: Current portion of long-term debt and other current borrowings   645    504 
Long-term debt  $169,003   $168,980 

 

In November 2021, the Company amended its Senior Secured Credit Facility to (i) increase the borrowing capacity under its committed line of credit from $50 million to $150 million, (ii) reduce its borrowing costs by an approximate 130 basis points and (iii) extend the initial maturity date by one year to the end of 2026. Borrowings under the credit facility now bear interest at a rate of LIBOR with no floor plus a spread of 1.50%, based on the Company’s net leverage ratio, compared to a prior rate of LIBOR with a floor of 0.75% plus a spread of 2.50%, resulting on total annual savings of approximately $15 million at current levels of outstanding borrowings, since entering into our inaugural US Bank syndicated facility in October of 2020. The effective interest rate for this credit facility including deferred issuance costs is 7.51%. In relation to this transaction, the Company accounted for costs related to fees paid of $1,496. This was accounted for as a debt modification and $1,346 of fees paid to banks were capitalized as deferred cost of financing and $150 paid to third parties recorded as an operating expense on the consolidated statements of operations for the year ended December 31, 2021. In March 2022, we voluntarily prepaid $15 million of capital to this credit facility which has decreased our net leverage ratio and triggered a step down in the applicable interest rate spread to 1.5%. Additionally, on September 30, 2022, we voluntarily prepaid $10.0 million of the term loan and $6.7 million under the revolving line of credit which remains fully unused as of June 30, 2023. Beginning on July 1, 2023 the interest rate on this credit facility was updated to SOFR plus the same spread of 1.5%.

 

Maturities of long-term debt and other current borrowings are as follows as of June 30, 2023:

 

      
2024  $645 
2025   13,884 
2026   15,038 
2027   143,750 
2028   - 
Total  $173,317 

 

The Company’s loans have maturities ranging from a few weeks to 5 years. Our credit facilities bear a weighted average interest rate of 6.74% as of June 30, 2023.