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Floor Plan Financing
 3 Months Ended
Mar. 31, 2025
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, 2025, the Company was in compliance with these covenants.
The amounts owed under floor plan payables are summarized as follows:
(in $000s)March 31, 2025December 31, 2024
Trade:
Daimler Truck Financial$176,105 $166,409 
PACCAR Financial Services134,316 129,899 
Ford Motor Credit Company, LLC24,498 34,190 
Trade floor plan payables$334,919 $330,498 
Non-trade:
PNC Equipment Finance, LLC$450,247 $470,830 
Non-trade floor plan payables$450,247 $470,830 
Interest on outstanding floor plan payable balances is due and payable monthly. Floor plan interest expense was $13.3 million and $12.9 million for the three months ended March 31, 2025, and 2024, 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 bore interest at a rate of U.S. Prime Rate plus 0.80% after an initial interest free period of up to 150 days. On January 1, 2025, the interest rate was updated to U.S. Prime Rate plus 0.00%. The total borrowing capacity under the Daimler Facility is $225.0 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 $175.0 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.
Ford Motor Credit Company, LLC
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 the 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 as of March 31, 2025 was $42.0 million. The FMCC agreement is evergreen and is subject to termination by either party through written notice.
References to the U.S. Prime Rate in the foregoing agreements represent the rate as published in The Wall Street Journal.
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, 2025, provides the Company with a $520.0 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%.
Note 7: Long-Term Debt
Debt obligations and associated interest rates consisted of the following:
(in $000s, except interest rate data) March 31, 2025December 31, 2024March 31, 2025December 31, 2024
ABL Facility$655,475 $582,900 6.4%7.1%
2029 Secured Notes920,000 920,000 5.5%5.5%
2023 Credit Facility17,559 17,648 5.8%5.8%
Other notes payable24,970 27,102 
3.1%-7.0%
3.1%-7.0%
Total debt outstanding1,618,004 1,547,650 
Deferred financing fees(18,862)(19,926)
Total debt, net of deferred financing fees1,599,142 1,527,724 
Less: current maturities(5,966)(7,842)
Long-term debt$1,593,176 $1,519,882 
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 $950.0 million first lien senior secured asset-based revolving credit facility (the “ABL Facility”), which matures on August 9, 2029, or, if earlier, the date that is 91 days prior to the maturity date of the Company’s existing senior notes or any debt that refinances such existing notes. 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 term Canadian Overnight Repo Rate Average (the “CORRA” 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 CORRA rate loans, 1.50% to 2.00%.