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Debt
 3 Months Ended
Mar. 31, 2025
Debt Disclosure [Abstract]  
Debt

Note 6. Debt

The fair value of the Company’s debt obligation approximated its book value as of March 31, 2025 and December 31, 2024 and consisted of the following (in thousands):

 

 

March 31, 2025

 

 

December 31, 2024

 

Amended First Lien Credit Facility

 

$

2,179,537

 

 

$

2,185,000

 

Less: Current portion of long-term debt

 

$

(21,850

)

 

$

(21,850

)

Total long-term debt

 

$

2,157,687

 

 

$

2,163,150

 

Less: Deferred financing costs

 

 

(40,253

)

 

 

(41,861

)

   Long-term debt, net

 

$

2,117,434

 

 

$

2,121,289

 

First Advantage Holdings, LLC, an indirect wholly-owned subsidiary of the Company, is a party to a First Lien Credit Agreement (as amended, “2024 First Lien Credit Agreement”), which provides for a term loan of $2.185 billion due October 31, 2031, carrying an interest rate of 3.00% to 3.25%, based on the first lien ratio, plus the Secured Overnight Financing Rate as administered by the Federal Reserve Bank of New York (“SOFR”) and an applicable margin (“Amended First Lien Credit Facility”), and a $250.0 million revolving credit facility due October 31, 2029 (“Amended Revolver”).

The Amended First Lien Credit Facility amortizes in equal quarterly installments in aggregate annual amounts equal to 1.00% of the principal amount. The Amended Revolver has no amortization.

The 2024 First Lien Credit Agreement is collateralized by substantially all assets and capital stock owned by direct and indirect domestic subsidiaries and are governed by certain restrictive covenants including limitations on indebtedness, liens, and other corporate actions such as investments and acquisitions. In the event the Company’s outstanding indebtedness under the Amended Revolver exceeds 40.0% of the aggregate principal amount of the revolving commitments then in effect, it is required to maintain a consolidated first lien leverage ratio no greater than 7.75 to 1.00. As of March 31, 2025, there were no outstanding borrowings under the Amended Revolver and $2,179.5 million outstanding under the Amended First Lien Credit Facility. As the Company had no outstanding amounts under the Amended Revolver, it was not subject to the consolidated first lien leverage ratio covenant. The Company was compliant with all covenants under the agreement as of March 31, 2025.