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Long-Term Debt (Tables) | 3 Months Ended
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Mar. 31, 2025
Debt Disclosure [Abstract] |
Schedule of Revolving Credit Facility and Long-Term Debt | Our long-term debt consists of the following:
|  | March 31, 2025 |  |  | December 31, 2024 |
|  | (In Thousands) |
Revolving Credit Facility (A) |  | $ | — |  |  | $ | — |
Senior Secured Notes due 2028, with an interest rate of 6.25% (B) |  |  | 478,440 |  |  |  | 478,440 |
Secured Financing due 2025, with an interest rate of 8.75% (C) |  |  | 7,028 |  |  |  | 8,516 |
Finance Leases (D) |  |  | 5,666 |  |  |  | 3,895 |
Unamortized debt issuance costs (1) |  |  | (5,204 | ) |  |  | (5,572 | )
|  |  | 485,930 |  |  |  | 485,279 |
Less current portion of long-term debt |  |  | 7,756 |  |  |  | 9,116 |
Long-term debt due after one year, net |  | $ | 478,174 |  |  | $ | 476,163 |
_____________________________ (1) Debt issuance costs as of March 31, 2025 and December 31, 2024 of approximat ely $0.6 million an d $0.6 million, respectively, relating to our Revolving Credit Facility are not included in Unamortized debt issuance costs. Such costs are included in our condensed consolidated balance sheet in Intangible and other assets, net. (A) The Revolving Credit Facility provides for borrowings up to an initial maximum of $75 million, with an option to increase the maximum by an additional $25 million (which amount is uncommitted). Availability under the Revolving Credit Facility is subject to a borrowing base and is also subject to an availability block of $7.5 million (which can be removed by us at our sole discretion, subject to the satisfaction of certain conditions) (the “Availability Block”). The Availability Block is applied against the $75 million maximum. The Revolving Credit Facility provides for a sub-facility for the issuance of letters of credit in an aggregate amount not to exceed $10 million, with the outstanding amount of any such letters of credit reducing availability for borrowings. As of March 31, 2025, our Revolving Credit Facility was undrawn and had approximately $40 million of availability, based on our eligible collateral. The Revolving Credit Facility matures on December 21, 2028, subject to springing maturity to the date that is 90 days prior to the stated maturity date of our existing Senior Secured Notes (defined below), which is currently October 15, 2028 (unless such Senior Secured Notes have been repaid or redeemed in full prior thereto). Borrowings outstanding under the Revolving Credit Facility will bear interest at a rate per annum equal to, at the option of us, either (a) term Secured Overnight Financing Rate (“SOFR”) for a period of one month (with a fallback to the prime rate if such rate is unavailable), plus 0.10%, plus an applicable margin of 1.625% or (b) term SOFR for a period of one, three or six months (at our election), plus 0.10%, plus an applicable margin of 1.625%, in each case with a floor of 0.00%. LSB Industries, Inc. and all of our subsidiaries (collectively, the “Borrowers”) are co-borrowers under the Revolving Credit Facility. Obligations under the Revolving Credit Facility are secured by a first priority security interest in substantially all of our current assets, including accounts receivable and inventory, subject to certain exceptions. The Revolving Credit Facility contains a financial covenant, which requires that, solely if we elect to remove the Availability Block, then the Borrowers must maintain a minimum fixed charge coverage ratio of not less than 1.00:1.00. The financial covenant, if triggered, is tested monthly. The financial covenant was not triggered as of March 31, 2025. (B) We previously issued at par an aggregate total of $700 million principal value of our Senior Secured Notes due 2028 (“Senior Secured Notes”). The Senior Secured Notes, which mature in October 2028, bear interest at a rate of 6.25% paid in arrears on May 15 and October 15 of each year. From time to time, we have engaged in open market repurchases to extinguish a portion of the outstanding balance. We did no t repurchase any of our Senior Secured Notes during the three months ended March 31, 2025. During the three months ended March 31, 2024, we repurchased $32.9 million in principal amount of our Senior Secured Notes for approximately $31.3 million, which was accounted for as an extinguishment of debt. Including our write-off of the associated remaining portion of unamortized debt issuance costs, we recognized a gain on extinguishment of approximately $1.1 million during the three months ended March 31, 2024. (C) In August 2020, we entered into a $30 million secured financing arrangement with an affiliate of Eldridge Industries, L.L.C. (“Eldridge”). Principal and interest are payable in 60 equal monthly installments with a final balloon payment of approximately $5 million due in August 2025. (D) Finance leases consist primarily of leases on railcars.

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