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Long-Term Debt and Financing Arrangements
 9 Months Ended
Sep. 30, 2025
Debt Disclosure [Abstract]  
Long-Term Debt and Financing Arrangements

NOTE 6. Long-Term Debt and Financing Arrangements

On June 20, 2025, we entered into a five-year, $450 million credit agreement (the "Credit Agreement"). This Credit Agreement replaces the credit agreement dated as of February 24, 2022 (the “2022 Credit Agreement”). As part of this transition, all outstanding standby letters of credit issued under the 2022 Credit Agreement were transferred to the new Credit Agreement. We did not incur any early termination penalties in connection with the termination of the 2022 Credit Agreement.

Borrowings under the Credit Agreement generally bear interest at a variable rate equal to (i) the secured overnight financing rate (published by the Federal Reserve Bank of New York, “SOFR”), plus a specified margin based on the term of such borrowing, plus a specified margin based upon our total net leverage ratio (as defined in the Credit Agreement) (the "Total Net Leverage Ratio"), or (ii) the base rate (which is the highest of (a) the administrative agent's prime rate, (b) the federal funds rate plus 0.50% or (c) the sum of 1% and one-month SOFR) plus a specified margin based upon the Total Net Leverage Ratio. The specified margin for SOFR loans varies from 100.0 to 175.0 basis points per annum. The specified margin for base rate loans varies from 0.0 to 75.0 basis points per annum. We must also pay (1) a commitment fee ranging from 10.0 to 25.0 basis points per annum (based upon the Total Net Leverage Ratio) on the aggregate unused commitments and (2) a letter of credit fee ranging from 100.0 to 175.0 basis points per annum (based upon the Total Net Leverage Ratio) on the undrawn amount of letters of credit. While any payment default exists, we must pay interest at a default rate equal to the applicable interest rate described above plus 2.0% per annum.

We have standby letters of credit that expire in 2026. As of September 30, 2025, and December 31, 2024, our letters of credit were $0.7 million and $0.8 million, respectively.

As of September 30, 2025 and December 31, 2024, we had no borrowings under the Credit Agreement and the 2022 Credit Agreement, and our unused and available borrowings were $449.3 million and $349.2 million, respectively. We were in compliance with our debt covenants as of September 30, 2025 and December 31, 2024.

We have entered into various Equipment Notes (“Notes”) for the purchase of tractors, trailers, containers and refrigeration units. The Notes are secured by the underlying equipment financed in the agreements.

Our outstanding Notes are as follows (in thousands):

 

September 30,

 

 

December 31,

 

 

2025

 

 

2024

 

 

 

 

 

 

 

Interim funding for equipment received and expected to be converted to an equipment note in a subsequent period; interest paid at a variable rate

$

49,751

 

 

$

-

 

 

 

 

 

 

 

Secured Equipment Note maturing in 2030 commencing in 2025; interest is paid monthly at a fixed annual rate between 5.10% and 5.40%

 

17,737

 

 

 

-

 

 

 

 

 

 

 

Secured Equipment Notes maturing on various dates in 2029 commencing on various dates in 2024; interest is paid monthly at a fixed annual rate between 5.11% and 6.24% (1)

 

16,366

 

 

 

21,400

 

 

 

 

 

 

 

Secured Equipment Notes maturing on various dates in 2028 commencing on various dates in 2023; interest is paid monthly at a fixed annual rate between 5.21% and 6.32%

 

69,229

 

 

 

85,050

 

 

 

 

 

 

 

Secured Equipment Notes maturing on various dates in 2027 commencing on various dates in 2022 and 2023; interest is paid monthly at a fixed annual rate between 2.07% and 6.45%

 

78,309

 

 

 

108,411

 

 

 

 

 

 

 

Secured Equipment Notes maturing on various dates in 2026 commencing on various dates in 2021; interest is paid monthly at a fixed annual rate between 1.48% and 2.41%

 

21,042

 

 

 

36,942

 

 

 

 

 

 

 

Secured Equipment Notes maturing on various dates in 2025 commencing on various dates in 2020; interest is paid monthly at a fixed annual rate between 1.51% and 1.80%

 

2,565

 

 

 

12,559

 

 

 

 

 

 

 

Total debt

 

254,999

 

 

 

264,362

 

 

 

 

 

 

 

Less current portion of long-term debt

 

(94,520

)

 

 

(100,001

)

 

 

 

 

 

 

Total long-term debt

$

160,479

 

 

$

164,361