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Credit Facilities and Long-Term Debt | 12 Months Ended
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Dec. 31, 2025
Debt Disclosure [Abstract] |
Credit Facilities and Long-Term Debt | Credit Facilities and Long-Term Debt Total debt outstanding is summarized as follows (in thousands):
| December 31,
| 2025 |  | 2024
2024 Credit Agreement⁽ᵃ⁾ |  |  |
Multi-currency revolver | $ | 298,426 |  |  | 244,171 |
U.S. dollar term loan⁽ᵇ⁾ | 188,771 |  |  | 198,287 |
Euro term loan⁽ᵇ⁾ | 110,855 |  |  | 102,908 |
Other | 20,663 |  |  | 16,948 |
Total debt | $ | 618,715 |  |  | $ | 562,314 |
Current maturities of debt | 51,988 |  |  | $ | 27,117 |
Long-term debt | 566,727 |  |  | 535,197 |
Total debt | $ | 618,715 |  |  | $ | 562,314 |
(a) Weighted average interest rate, adjusted for the impact of interest rate swap agreements, was 4.8% and 5.6% at December 31, 2025 and 2024, respectively. Interest rates primarily consist of Term SOFR for borrowings in U.S. dollars and the Euro Interbank Offered Rate ("EURIBOR") for borrowings in euros. The average daily alternative base rate swingline loan balance was $1.5 million and $0.7 million during the years ended December 31, 2025 and 2024, respectively. (b) Amounts are shown net of unamortized deferred financing costs of $1.9 million and $2.7 million at December 31, 2025 and 2024, respectively. Term Loans and Revolving Credit Facilities In May 2024 and July 2024, the Company amended it's then-existing Credit Agreement with JPMorgan Chase Bank, N.A., as administrative agent, and a syndicate of lenders ("2022 Credit Agreement"), to transition from the Canadian Dollar Offered Rate to the Canadian Overnight Repo Rate Average for benchmark borrowings denominated in Canadian dollars and to provide for a new $125 million term loan and the use of funds available under the revolving credit facility to finance the acquisition of Nissens Automotive and related transaction costs. For additional information on our agreement to acquire Nissens Automotive see Note 2, “Business Combinations.” In September 2024, the Company refinanced its existing 2022 Credit Agreement with a new five-year Credit Agreement with JPMorgan Chase Bank, N.A., as administrative agent, and a syndicate of lenders (“2024 Credit Agreement”). The 2024 Credit Agreement matures on September 16, 2029 and provides for an approximately $750 million credit facility, comprised of (i) a $430 million multi-currency revolving credit facility ("global tranche"); (ii) a $10 million multi-currency revolving credit facility, available to one or more wholly-owned Danish subsidiaries of the Company ("Danish tranche"); (iii) a $200 million term loan facility in U.S. dollars; and (iv) a 100 million euros term loan facility. The revolving credit facility has a $25 million sublimit for the issuance of letters of credit, and a $30 million sublimit for the borrowing of swingline loans. Borrowings under the 2024 Credit Agreement were used to repay all outstanding borrowings under the 2022 Credit Agreement and to finance the Company's acquisition of Nissens Automotive and related transaction costs, and will be used for general corporate purposes of the Company and its subsidiaries. The term loans amortize in quarterly installments of 1.25% in each of the first two years following the funding, 1.875% for the next year, and 2.50% in each quarter thereafter. The Company may request up to two one-year extensions of the maturity date. The Company may, subject to customary conditions, increase the global tranche or obtain incremental term loans in an aggregate amount not to exceed (x) the greater of (i) $168 million and (ii) 100% of consolidated EBITDA for the four fiscal quarters ended most recently before such date, plus (y) any voluntary prepayment of term loans, plus (z) any amount that, after giving effect to the increase, the pro forma First Lien Net Leverage Ratio (as defined in the 2024 Credit Agreement) does not exceed 2.75 to 1.00. The Company may also, subject to customary conditions, request to increase the Danish tranche by up to $5 million. Borrowings bear interest at the applicable interest rate index selected by the Company based on the particular currency borrowed plus a credit spread adjustment depending on the index, and a margin ranging from 1.25% to 2.25% per annum based on the total net leverage ratio of the Company and its restricted subsidiaries. The Company may select interest periods of one, three or six months depending on the index. Interest is payable at the end of the selected interest period, but no less frequently than quarterly. The Company may prepay the borrowings, in whole or in part, at any time without premium or penalty, subject to certain conditions. The Company’s obligations under the 2024 Credit Agreement are guaranteed by its material domestic subsidiaries (each, a “Guarantor”), and secured by a first priority perfected security interest in substantially all of the existing and future personal property of the Company and each Guarantor, subject to certain exceptions. The collateral security described above also secures certain banking services obligations and interest rate swaps and currency or other hedging obligations of the Company owing to any of the then existing lenders or any affiliates thereof. Outstanding borrowings, net of unamortized deferred financing costs, and letters of credit under the 2024 Credit Agreement consist of the following (in millions):
|  | December 31,
|  | 2025 |  | 2024
Current maturities of debt |  | $ | 45.3 |  |  | $ | 25.2 |
Long-term debt |  | 552.8 |  | 520.1
Total outstanding borrowings |  | $ | 598.1 |  |  | $ | 545.4 |
Letters of credit |  | $ | 4.6 |  |  | $ | 2.5 |
The 2024 Credit Agreement contains customary covenants limiting, among other things, the incurrence of additional indebtedness, the creation of liens, mergers, consolidations, liquidations and dissolutions, sales of assets, dividends and other payments in respect of equity interests, acquisitions, investments, loans and guarantees, subject, in each case, to customary exceptions, thresholds and baskets. The 2024 Credit Agreement also contains customary events of default. Polish Overdraft Facility In 2023, our Polish subsidiary, SMP Poland sp. z.o.o., amended its overdraft facility with HSBC Continental Europe (Spolka Akcyjna) Oddzial w Polsce to provide for borrowings of up to Polish zloty 30 million (approximately $8.3 million) if borrowings are solely in Polish zloty, or up to 85% of the Polish zloty 30 million limit (approximately $7.1 million) if borrowings are in euros and/or U.S. dollars. The overdraft facility automatically renews every three months until June 2027, subject to cancellation by either party, at its sole discretion, at least 30 days prior to the commencement of the three-month renewal period. Borrowings under the amended overdraft facility bear interest at a rate equal to (i) the one month Warsaw Interbank Offered Rate (“WIBOR”) + 1.0% for borrowings in Polish zloty, (ii) the one month EURIBOR + 1.0% for borrowings in Euros, and (iii) the Mid-Point of the Fed Target Range + 1.25% for borrowings in U.S dollars. Borrowings under the overdraft facility are guaranteed by Standard Motor Products, Inc., the ultimate parent company. There were $3.6 million borrowings outstanding under the overdraft facility at December 31, 2025 and none at December 31, 2024. Maturities of Debt As of December 31, 2025, maturities of debt through 2037, assuming no prepayments, are as follows (in thousands):
| Multi-Currency Revolver |  | U.S. Dollar Term Loan |  | Euro Term Loan |  | Other Debt |  | Total
2026 | — |  |  | 9,606 |  |  | 5,651 |  |  | 6,731 |  |  | 21,988 |
2027 | — |  |  | 14,655 |  |  | 8,614 |  |  | 1,279 |  |  | 24,548 |
2028 | — |  |  | 19,703 |  |  | 11,576 |  |  | 1,207 |  |  | 32,486 |
2029 | 298,426 |  |  | 144,807 |  |  | 85,014 |  |  | 1,242 |  |  | 529,489 |
2030 | — |  |  | — |  |  | — |  |  | 1,279 |  |  | 1,279 |
Thereafter | — |  |  | — |  |  | — |  |  | 8,925 |  |  | 8,925 |
Total | 298,426 |  |  | 188,771 |  |  | 110,855 |  |  | 20,663 |  |  | 618,715 |
Less: current maturities | (30,000) |  |  | (9,606) |  |  | (5,651) |  |  | (6,731) |  |  | (51,988) |
Long-term debt | 268,426 |  |  | 179,165 |  |  | 105,204 |  |  | 13,932 |  |  | 566,727 |
Deferred Financing Costs Deferred financing costs related to our term loan and revolving credit facilities were $3.6 million and $4.8 million as of December 31, 2025 and 2024, respectively. In connection with the July 2024 amendment to our 2022 Credit Agreement and the 2024 Credit Agreement, we deferred financing costs of $5.1 million that will be amortized over the term of the borrowings, and expensed $1.4 million of pre-existing unamortized financing costs to interest expense in our consolidated statement of operations. Deferred financing costs as of December 31, 2025, assuming no prepayments, are being amortized in the amo unts of $1.1 million in 2026, $1.0 million in 2027, $0.9 million in 2028, and $0.6 million in 2029. Letters of Credit As of December 31, 2025 and 2024, we had outstanding letters of credit aggregating approximately $4.6 million and $2.5 million, respectively. These letters of credit are primarily provided as security for reimbursements to insurance companies and for import bonds placed with U.S. Customs.

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