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Note 3 - Long Term Debt | 6 Months Ended
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Jun. 30, 2025
Notes to Financial Statements |
Debt Disclosure [Text Block] |
3. | Long Term Debt
As of June 30, 2025 and December 31, 2024, long-term debt consisted of obligations under our Senior Credit Agreement (as defined below), our 5.875% senior notes due 2026 (the “2026 Notes”), our 7.0% senior notes due 2027 (the “2027 Notes”), our 10.5% senior notes due 2029 (the “2029 Notes”), our 4.75% senior notes due 2030 (the “2030 Notes”) and our 5.375% notes due 2031 (the “2031 Notes”), as follows (in millions):
|  | June 30, |  |  | December 31, |
|  | 2025 |  |  | 2024 |
Long-term debt : |  |  |  |  |  |  |  |
Senior Credit Facility: |  |  |  |  |  |  |  |
2021 Term Loan (matures December 1, 2028) |  | $ | 1,369 |  |  | $ | 1,395 |
2024 Term Loan (matures June 4, 2029) |  |  | 493 |  |  |  | 498 |
Senior secured first lien notes: |  |  |  |  |  |  |  |
2029 Notes (matures July 15, 2029) |  |  | 1,250 |  |  |  | 1,250 |
Senior unsecured notes: |  |  |  |  |  |  |  |
2026 Notes (matures July 15, 2026) |  |  | 2 |  |  |  | 10 |
2027 Notes (matures May 15, 2027) |  |  | 528 |  |  |  | 528 |
2030 Notes (matures October 15, 2030) |  |  | 790 |  |  |  | 790 |
2031 Notes (matures November 15, 2031) |  |  | 1,219 |  |  |  | 1,219 |
Total outstanding principal, including current portion |  |  | 5,651 |  |  |  | 5,690 |
Unamortized deferred loan costs - Senior Credit Facility |  |  | (29 | ) |  |  | (34 | )
Unamortized deferred loan costs - 2027 Notes |  |  | (3 | ) |  |  | (3 | )
Unamortized deferred loan costs - 2029 Notes |  |  | (11 | ) |  |  | (12 | )
Unamortized deferred loan costs - 2030 Notes |  |  | (7 | ) |  |  | (8 | )
Unamortized deferred loan costs - 2031 Notes |  |  | (11 | ) |  |  | (12 | )
Less current portion |  |  | (10 | ) |  |  | (20 | )
Long-term debt, less current portion and deferred financing costs |  | $ | 5,580 |  |  | $ | 5,601 |
Revolving Credit Facility: |  |  |  |  |  |  |  |
Revolving Credit Facility commitment |  | $ | 700 |  |  | $ | 680 |
Undrawn outstanding letters of credit |  |  | (8 | ) |  |  | (6 | )
Borrowing availability under Revolving Credit Facility |  | $ | 692 |  |  | $ | 674 |
Revolving Credit Facility. On March 31, 2025, we entered into a fourth amendment (the “Fourth Amendment”) of our Senior Credit Agreement. The Fourth Amendment, among other things, increases the aggregate commitments under the Revolving Credit Facility (the “Revolving Credit Facility”) by $20 million, resulting in aggregate commitments under the Revolving Credit Facility of $700 million. Borrowings under the Revolving Credit Facility bear interest, at our option, at either the SOFR rate or the Base Rate, in each case, plus an applicable margin. The costs associated with the amendment were not material. Because of their relationship to the interest rate caps, described below, borrowings under the 2021 Term Loan and 2019 Term Loan bear interest at the 1-month SOFR rate, plus applicable margin. As of June 30, 2025, the interest rate on the balance outstanding under the 2024 Term Loan and the 2021Term Loan were 9.6% and 7.4%, respectively. Interest Rate Caps. On February 23, 2023, we entered into two interest rate caps pursuant to an International Swaps and Derivatives Association Master Agreement (the “ISDA Master Agreement”) with two counterparties, Wells Fargo Bank, NA and Truist Bank, respectively. On May 30, 2025, we amended the notional amount of the interest rate caps in order to better match the outstanding amounts of the related outstanding indebtedness. At June 30, 2025 and December 31, 2024, the caps had a combined notional value of approximately $1.9 billion and mature on December 31, 2025. The interest rate caps protect us against adverse fluctuations in interest rates by reducing our exposure to variability in cash flows on a portion of our variable-rate debt. The interest rate caps are designated as cash flow hedges of our risk of changes in our cash flows attributable to changes in 1-month SOFR on our outstanding variable-rate debt in accordance with ASC 815. We elected to apply the optional expedient in ASC 848, Reference Rate Reform, that enabled us to consider the amended swaps a continuation of the existing contracts. As a result, the transition did not have an impact on our hedge accounting or a material impact to our financial statements. The interest rate caps, as amended, effectively limit the annual interest charged on our 2021 Term Loan and our 2024 Term Loan to a maximum of 1-month Adjusted Term SOFR of 4.96% and 5.047%. We are required to pay aggregate fees in connection with the interest rate caps of approximately $34 million that is due and payable at maturity on December 31, 2025. On the initial designation date, we recognized an asset and corresponding liability for the deferred premium payable equal to $34 million. The asset is amortized into interest expense straight-line over the term of the hedging relationship. At June 30, 2025 and December 31, 2024, the recorded value of the asset was $6 million and $12 million, net of accumulated amortization, respectively. At June 30, 2025 and December 31, 2024, the fair value of the derivative liability was $33 million and $32 million, respectively. We present the deferred premium, the asset, and the fair value of the derivative, net within other accrued expenses in our condensed consolidated balance sheets. The ISDA Master Agreement, together with its related schedules, contain customary representations, warranties and covenants. The interest rate caps were not entered into for speculative trading purposes. Changes in the fair value of the interest rate caps are reported as a component of other comprehensive income. Actual gains and losses are reclassified into earnings in the same period or periods during which the hedged transaction affects earnings and are presented in the same income statement line item as the earnings effect of the hedged transaction. Gains and losses on the derivative instrument representing hedge components excluded from the assessment of effectiveness are recognized currently in earnings and are presented in the same line of the income statement for the hedged item. We recognized $6 million of amortization expense for the asset during each of the six months ended June 30, 2025 and 2024, which is included as a component of cash flows from operating activities in our condensed consolidated statements of cash flows. Cash flows received from the counterparties pursuant to the interest rate caps are included as components of cash flows from financing activities in our condensed consolidated statements of cash flows. During the six months ended June 30, 2025, we did not receive a refund of interest under the rate caps. During the six months ended June 30, 2025 we did not receive any amounts under the interest rate caps. During the six months ended June 30, 2024, we received $4 million of cash payments from the counterparties that we reclassified as reductions of interest expense from the interest rate caps in our condensed consolidated statements of operations. For all of our interest bearing obligations, we made interest payments of approximately $230 million and $210 million during the six-months ended June 30, 2025 and 2024, respectively. During the six-months ended June 30, 2025 and 2024, we capitalized $1 million and $1 million of interest payments, respectively, related to the Assembly Atlanta project. As of June 30, 2025, the aggregate minimum principal maturities of our long-term debt for the remainder of 2025 and the succeeding 5 years were as follows (in millions):
|  | Minimum Principal Maturities |
Year |  | Senior Credit Facility |  |  | 2026 Notes |  |  | 2027 Notes |  |  | 2029 Notes |  |  | 2030 Notes |  |  | 2031 Notes |  |  | Total |
Remainder of 2025 |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |
2026 |  |  | 20 |  |  |  | 2 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 22 |
2027 |  |  | 20 |  |  |  | - |  |  |  | 528 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 548 |
2028 |  |  | 1,344 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 1,344 |
2029 |  |  | 478 |  |  |  | - |  |  |  | - |  |  |  | 1,250 |  |  |  | - |  |  |  | - |  |  |  | 1,728 |
2030 |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 790 |  |  |  | - |  |  |  | 790 |
Thereafter |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 1,219 |  |  |  | 1,219 |
Total |  | $ | 1,862 |  |  | $ | 2 |  |  | $ | 528 |  |  | $ | 1,250 |  |  | $ | 790 |  |  | $ | 1,219 |  |  | $ | 5,651 |
As of June 30, 2025, there were no significant restrictions on the ability of our subsidiaries to distribute cash to us or to the guarantor subsidiaries. The 2019 Senior Credit Agreement contains affirmative and restrictive covenants with which we must comply. The 2026 Notes, the 2027 Notes, the 2029 Notes, the 2030 Notes and the 2031 Notes also include covenants with which we must comply. As of June 30, 2025 and December 31, 2024, we were in compliance with all required covenants under all our debt obligations.

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