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Long-Term Debt | 3 Months Ended
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Jun. 30, 2025
Debt Disclosure [Abstract] |
Long-Term Debt | Long-Term Debt Our long-term debt consists of the following at the dates indicated:
|  | June 30, 2025 |  | March 31, 2025
|  | Face Amount |  | Unamortized Debt Issuance Costs (1) |  | Book Value |  | Face Amount |  | Unamortized Debt Issuance Costs (1) |  | Book Value
|  | (in thousands)
Asset-based revolving credit facility (“ABL Facility”) |  | $ | 37,000 |  |  |  |  | $ | 37,000 |  |  | $ | 109,000 |  |  |  |  | $ | 109,000 |
Senior secured term loan "B" credit facility (“Term Loan B”) |  | 691,250 |  |  | $ | (15,836) |  |  | 675,414 |  |  | 693,000 |  |  | $ | (16,479) |  |  | 676,521 |
Senior secured notes: |  |  |  |  |  |  |  |  |  |  |  |
8.125% Notes due 2029 (“2029 Senior Secured Notes”) |  | 900,000 |  |  | (9,560) |  |  | 890,440 |  |  | 900,000 |  |  | (10,219) |  |  | 889,781 |
8.375% Notes due 2032 (“2032 Senior Secured Notes”) |  | 1,281,000 |  |  | (15,587) |  |  | 1,265,413 |  |  | 1,300,000 |  |  | (16,416) |  |  | 1,283,584 |
Other long-term debt |  | 11,215 |  |  | (27) |  |  | 11,188 |  |  | 11,652 |  |  | (30) |  |  | 11,622 |
Total long-term debt |  | 2,920,465 |  |  | (41,010) |  |  | 2,879,455 |  |  | 3,013,652 |  |  | (43,144) |  |  | 2,970,508 |
Less: Current maturities |  | 8,842 |  |  | — |  |  | 8,842 |  |  | 8,805 |  |  | — |  |  | 8,805 |
Long-term debt |  | $ | 2,911,623 |  |  | $ | (41,010) |  |  | $ | 2,870,613 |  |  | $ | 3,004,847 |  |  | $ | (43,144) |  |  | $ | 2,961,703 |
(1) Debt issuance costs related to the ABL Facility are reported within intangible assets, rather than as a reduction of the carrying amount of long-term debt. The unamortized debt issuance costs for the Term Loan B include a $4.2 million discount. ABL Facility Total commitments under the ABL Facility are $475.0 million, which we reduced from $550.0 million effective June 12, 2025. The ABL Facility includes a $200.0 million sub-limit for letters of credit. Availability under the ABL Facility is subject to a borrowing base that is determined by calculating the amount equal to the sum of our eligible cash, outstanding accounts receivable balances with investment and non-investment grade counterparties, certain inventory, including inventory on railcars and unsettled derivative contracts. These amounts are subject to certain percentage and dollar amount caps, as described within the ABL Facility. The borrowing base is calculated monthly pursuant to a borrowing base certificate we deliver to the administrative agent. Availability under the ABL Facility is based on the lower of the current borrowing base and the total commitments, less borrowings and outstanding letters of credit. At June 30, 2025, $37.0 million was outstanding under the ABL Facility, letters of credit outstanding were $51.8 million, and we had a borrowing base of $313.6 million. The ABL Facility is scheduled to mature at the earliest of (a) February 2, 2029 or (b) 91 days prior to the earliest maturity date in respect to any of our indebtedness in an aggregate principal amount of $50.0 million or greater, subject to certain exceptions. The ABL Facility is secured by a lien on substantially all of our assets, including among other things, a first priority lien on our accounts receivable, inventory, pledged deposit accounts, cash and cash equivalents and related assets and a second priority lien on all of our other assets. All borrowings under the ABL Facility bear interest at a secured overnight financing rate (“SOFR”) or the alternative base rate to provide for a 0.25% decrease based on our consolidated net leverage ratio. The applicable margin for alternate base rate loans varies from 1.50% to 2.00% and the applicable margin for SOFR varies from 2.50% to 3.00%. In addition, a commitment fee will be charged and payable quarterly in arrears based on the average daily unused portion of the revolving commitments under the ABL Facility. Such commitment fee will be 0.50% per year, subject to a reduction to 0.375% in the event our fixed charge coverage ratio is greater than or equal to 1.75 to 1.00. At June 30, 2025, the borrowings under the ABL Facility had a weighted average interest rate of 8.10% calculated as a SOFR rate of 4.32% plus a margin of 3.10% for SOFR borrowings and the prime rate of 7.50% plus a margin of 2.00% on the alternate base borrowings. On June 30, 2025, the interest rate in effect on letters of credit was 2.75%. The ABL Facility contains various affirmative and negative covenants, including financial reporting requirements and limitations on indebtedness, liens, mergers, consolidations, liquidations and dissolutions, sales of assets, distributions and other restricted payments, investments (including acquisitions) and transactions with affiliates. The ABL Facility contains, as the only financial covenant, a fixed charge coverage ratio that is tested based on the financial statements for the most recently ended fiscal quarter upon the occurrence and during the continuation of a Cash Dominion Event (as defined in the ABL Facility). At June 30, 2025, no Cash Dominion Event had occurred. Compliance At June 30, 2025, we were in compliance with the covenants under the ABL Facility. Term Loan B The Term Loan B was issued at 99.25% of par for gross proceeds of $694.8 million. The Term Loan B was issued pursuant to a credit agreement dated February 2, 2024 (“Term Loan Credit Agreement”). The Term Loan B matures on February 2, 2031 and will amortize in equal quarterly installments in aggregate annual amounts equal to 1.0% of the original principal amount beginning with the fiscal quarter ended June 30, 2024, with the balance payable on maturity. The Term Loan B is secured by first priority liens on substantially all of our assets other than our accounts receivable, inventory, pledged deposit accounts, cash and cash equivalents and related assets and second priority liens on our accounts receivable, inventory, pledged deposit accounts, cash and cash equivalents and related assets. The Term Loan B bears interest at a SOFR-based rate or an alternate base rate, in each case plus an applicable margin. The applicable margin for alternate base rate loans varies from 2.50% to 2.75% and the applicable margin for SOFR-based loans varies from 3.50% to 3.75%, in each case, depending on our consolidated first lien net leverage ratio (as defined in the Term Loan Credit Agreement). At June 30, 2025, the borrowings under the Term Loan B had an interest rate of SOFR of 4.33% plus a margin of 3.75%. The Term Loan Credit Agreement contains various affirmative and negative covenants, including financial reporting requirements and limitations on indebtedness, liens, mergers, consolidations, liquidations and dissolutions, sales of assets, distributions and other restricted payments, investments (including acquisitions) and transactions with affiliates. The Term Loan Credit Agreement requires that we maintain, on a quarterly basis, beginning with the quarter ended June 30, 2024, a debt service coverage rate (as defined in the Term Loan Credit Agreement) of no less than 1.1 to 1.0. At June 30, 2025, our debt service coverage rate was approximately 2.16 to 1.0. The Term Loan Credit Agreement contains other customary terms, events of default and covenants. Compliance At June 30, 2025, we were in compliance with the covenants under Term Loan B. Senior Secured Notes The 2029 Senior Secured Notes bear interest at 8.125% and the 2032 Senior Secured Notes bear interest at 8.375%. Interest on the 2029 Senior Secured Notes and 2032 Senior Secured Notes is payable on February 15, May 15, August 15 and November 15 of each year, which started on May 15, 2024. The 2029 Senior Secured Notes mature on February 15, 2029 and the 2032 Senior Secured Notes mature on February 15, 2032. The 2029 Senior Secured Notes and 2032 Senior Secured Notes were issued pursuant to an indenture dated February 2, 2024 (“Indenture”). The 2029 Senior Secured Notes and 2032 Senior Secured Notes are secured by first priority liens on substantially all of our assets other than our accounts receivable, inventory, pledged deposit accounts, cash and cash equivalents and related assets and second priority liens on our accounts receivable, inventory, pledged deposit accounts, cash and cash equivalents and related assets. The Indenture contains covenants that, among other things, limit our ability to: pay distributions or make other restricted payments or repurchase stock; incur or guarantee additional indebtedness or issue disqualified stock or certain preferred stock; make certain investments; create or incur liens; sell assets; enter into restrictions affecting the ability of restricted subsidiaries to make distributions, make loans or advances or transfer assets to the guarantors (including the Partnership); enter into certain transactions with our affiliates; designate restricted subsidiaries as unrestricted subsidiaries; and consolidate, merge or transfer or sell all or substantially all of our assets. These covenants are subject to a number of important exceptions and qualifications. The Indenture contains other customary terms, events of default and covenants. We have the option to redeem all or part of the 2029 Senior Secured Notes, at any time on or after February 15, 2026, at the redemption prices specified in the Indenture. We have the option to redeem all or part of the 2032 Senior Secured Notes, at any time on or after February 15, 2027, at the redemption prices specified in the Indenture. Senior Secured Notes Repurchases The following table summarizes repurchases of Senior Secured Notes for the quarter ended June 30, 2025 (in thousands):
2032 Senior Secured Notes |  |
Notes repurchased |  | $ | 19,000 |
Cash paid (excluding payments of accrued interest) |  | $ | 17,274 |
Gain on early extinguishment of debt (1) |  | $ | 1,492 |
(1) Gain on early extinguishment of debt for the 2032 Senior Secured Notes during the quarter ended June 30, 2025 is inclusive of the write off of debt issuance costs of $0.2 million. The gain is reported within gain on early extinguishment of liabilities, net within our unaudited condensed consolidated statement of operations. Compliance At June 30, 2025, we were in compliance with the covenants under the Indenture. Other Long-Term Debt On June 24, 2024, we entered into an equipment loan for $6.4 million with American Bank and Trust Company which bears interest at a rate of 8.50% and is secured by an airplane. On September 24, 2024, we refinanced the loan and lowered the interest rate to 8.00%. We have an aggregate principal balance of $5.5 million at June 30, 2025. This loan matures on June 24, 2030. On October 1, 2024, we entered into a second equipment loan for $6.4 million with American Bank and Trust Company which bears interest at a rate of 8.00% and is secured by an airplane. We have an aggregate principal balance of $5.7 million at June 30, 2025. This loan matures on September 24, 2030. Debt Maturity Schedule The scheduled maturities of our long-term debt are as follows at June 30, 2025:
Year Ending March 31, |  | ABL Facility |  | Term Loan B |  | Senior Secured Notes |  | Other Long-Term Debt |  | Total
|  | (in thousands)
2026 (nine months) |  | $ | — |  |  | $ | 5,250 |  |  | $ | — |  |  | $ | 1,368 |  |  | $ | 6,618 |
2027 |  | — |  |  | 7,000 |  |  | — |  |  | 1,957 |  |  | 8,957 |
2028 |  | — |  |  | 7,000 |  |  | — |  |  | 2,120 |  |  | 9,120 |
2029 |  | 37,000 |  |  | 7,000 |  |  | 900,000 |  |  | 2,300 |  |  | 946,300 |
2030 |  | — |  |  | 7,000 |  |  | — |  |  | 2,494 |  |  | 9,494 |
2031 |  | — |  |  | 658,000 |  |  | — |  |  | 976 |  |  | 658,976 |
Thereafter |  | — |  |  | — |  |  | 1,281,000 |  |  | — |  |  | 1,281,000 |
Total |  | $ | 37,000 |  |  | $ | 691,250 |  |  | $ | 2,181,000 |  |  | $ | 11,215 |  |  | $ | 2,920,465 |
Amortization of Debt Issuance Costs Amortization expense for debt issuance costs related to long-term debt was $2.0 million and $1.9 million during the three months ended June 30, 2025 and 2024. The following table summarizes expected amortization of debt issuance costs at June 30, 2025 (in thousands):
Year Ending March 31, |  |
2026 (nine months) |  | $ | 5,925 |
2027 |  | 7,823 |
2028 |  | 7,823 |
2029 |  | 7,486 |
2030 |  | 5,184 |
2031 |  | 4,717 |
Thereafter |  | 2,052 |
Total |  | $ | 41,010 |

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