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Floor Plan Financing
 3 Months Ended
Mar. 31, 2024
Debt Disclosure [Abstract]  
Floor Plan Financing
Note 5: Floor Plan Financing
Floor plan payables represent financing arrangements to facilitate the Company’s purchase of new and used trucks, cranes, and construction equipment inventory. All floor plan payables are collateralized by the inventory financed. These payables become due and payable upon the sale, transfer, or reclassification of each unit of inventory. Certain floor plan arrangements require the Company to satisfy various financial ratios consistent with those under the ABL Facility (as defined below). As of March 31, 2024, the Company was in compliance with these covenants.
The amounts owed under floor plan payables are summarized as follows:
(in $000s)March 31, 2024December 31, 2023
Trade:
Daimler Truck Financial$202,016 $181,480 
PACCAR Financial Services105,630 71,717 
Trade floor plan payables$307,646 $253,197 
Non-trade:
PNC Equipment Finance, LLC$459,792 $409,113 
Non-trade floor plan payables$459,792 $409,113 
Interest on outstanding floor plan payable balances is due and payable monthly. Floor plan interest expense was $12.9 million and $6.8 million for the three months ended March 31, 2024, and 2023, respectively.
Trade Floor Plan Financing:
Daimler Truck Financial
The Company is party to the Wholesale Financing Agreement with Daimler Truck Financial (the “Daimler Facility”), which bears interest at a rate of U.S. Prime Rate plus 0.80% after an initial interest free period of up to 150 days. The total borrowing capacity under the Daimler Facility is $175.0 million, however, from time to time, Daimler extends credit to the Company in excess of this amount. The Daimler agreement is evergreen and is subject to termination by either party through written notice.
PACCAR
The Company has an Inventory Financing Agreement with PACCAR Financial Corp that provides the Company with a line of credit of $125.0 million to finance inventory purchases of new Peterbilt and/or Kenworth trucks, tractors, and chassis. Amounts borrowed against this line of credit incur interest at a rate of U.S. Prime Rate minus 0.71%. The PACCAR agreement extends automatically each April and is subject to termination by either party through written notice.
References to the Prime Rate in the foregoing agreements represent the rate as published in The Wall Street Journal.
Ford Motor Credit Company
On April 2, 2024, the Company entered into the Master Loan and Security Agreement with Ford Motor Credit Company, LLC (the “FMCC Facility”), which allows the Company to enter into individual loan supplements which bear interest based on bank prime loan rate as reported by the Federal Reserve Board for the Friday preceding the last Monday of a given month. The total borrowing capacity under the FMCC Facility is $30.0 million. The FMCC agreement is evergreen and is subject to termination by either party through written notice. The Company has not executed any loan supplements under the FMCC Facility as of the date of this filing.
Non-Trade Floor Plan Financing:
PNC Equipment Finance, LLC
The Company has an Inventory Loan, Guaranty and Security Agreement (the “Loan Agreement”) with PNC Equipment Finance, LLC. The Loan Agreement, as of March 31, 2024, provides the Company with a $460.0 million revolving credit facility, which matures on August 25, 2025 and bears interest at a three-month term secured overnight financing rate (“SOFR”) plus 3.00%. During April 2024, the Company entered into an amendment to the Loan Agreement which increased the revolving credit facility to $480.0 million.
Note 7: Long-Term Debt
Debt obligations and associated interest rates consisted of the following:
(in $000s)March 31, 2024December 31, 2023March 31, 2024December 31, 2023
ABL Facility$552,400 $552,400 7.5%7.7%
2029 Secured Notes920,000 920,000 5.5%5.5%
2023 Credit Facility17,904 13,800 5.8%5.8%
Other notes payable29,083 31,599 
3.1%-7.9%
3.1%-7.9%
Total debt outstanding1,519,387 1,517,799 
Deferred financing fees(20,975)(22,406)
Total debt net of deferred financing fees1,498,412 1,495,393 
Less: current maturities(6,066)(8,257)
Long-term debt$1,492,346 $1,487,136 
As of March 31, 2024, borrowing availability under the ABL Facility was $194.5 million, and outstanding standby letters of credit were $3.1 million.
ABL Facility
The Company and certain of its direct and indirect subsidiaries are party to an asset-based revolving credit agreement (the “ABL Credit Agreement”), consisting of a $750.0 million first lien senior secured asset-based revolving credit facility (the “ABL Facility”), which matures on April 1, 2026. Borrowings under the ABL Facility bear interest at a floating rate, which, at the Company’s election, could be (a) in the case of U.S. dollar denominated loans, either (i) SOFR plus an applicable margin or (ii) the base rate plus an applicable margin; or (b) in the case of Canadian dollar denominated loans, the CDOR rate plus an applicable margin. The applicable margin varies based on Average Availability (as defined in the ABL Credit Agreement) from (a) with respect to base rate loans, 0.50% to 1.00% and (b) with respect to SOFR loans and CDOR rate loans, 1.50% to 2.00%.
2023 Credit Facility
On January 13, 2023, the Company entered into a new credit agreement allowing for borrowings of up to $18.0 million (the “2023 Credit Facility”). Proceeds from the credit agreement were used to finance a portion of the Company’s acquisition of real property from a related party in December 2022. A portion of the loan proceeds has been used to finance improvements to the property. In connection with entering into the agreement, the Company received net proceeds of $13.7 million. During the first quarter of 2024, the Company drew down an additional $4.2 million, as certain required construction milestones were met. Borrowings bear interest at a fixed rate of 5.75% per annum and are required to be repaid monthly in an amount of approximately $0.1 million with a balloon payment due on the maturity date of January 13, 2028. Borrowings are secured by the real property and improvements.