Long-Term Debt

6 Months Ended

Jun. 30, 2023

Long-Term DebtLong-term debt consists of the following (in thousands):


	June 30, 2023		December 31, 2022
Term Loan Facility	$	194,250	$	195,250
Revolving Credit Facility	20,000		48,000
Less: deferred financing costs	(3,641)		(4,187)
Total debt, net of deferred financing costs	210,609		239,063
Less: current portion	(2,000)		(2,000)
Long-term debt, net current portion	$	208,609	$	237,063

Senior Secured Credit Agreement

Holdings has a senior secured credit agreement (as amended, the “Senior Secured Credit Agreement”), consisting of (i) a $350.0 million senior secured six-year term loan facility (the “Term Loan Facility”) and (ii) a $150.0 million revolving credit facility (the “Revolving Credit Facility”).

As of June 30, 2023, interest rates on the Term Loan Facility were SOFR plus 5.75%, or 10.98%, and on the Revolving Credit Facility, SOFR plus 3.25%, ranging from 8.32% to 8.48%. As of June 30, 2023, there were $194.3 million outstanding under the Term Loan Facility, $20.0 million outstanding under the Revolving Credit Facility, letters of credit of $0.6 million, and $129.4 million of availability under the Revolving Credit Facility.

The Senior Secured Credit Agreement contains affirmative and negative covenants, including covenants that restrict the Company’s incurrence of indebtedness, incurrence of liens, dispositions, investments, acquisitions, restricted payments, and transactions with affiliates. The Senior Secured Credit Agreement also includes customary events of default, including the occurrence of a change of control.

The Revolving Credit Facility also includes a consolidated leverage ratio financial covenant that is tested on the last day of each fiscal quarter. To remain in compliance with the financial covenant, Shoals Intermediate Holdings’ consolidated leverage ratio, as of the last day of any quarter, cannot be greater than 6.50 to 1.00. As of June 30, 2023, the Company was in compliance with all the required covenants.