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DEBT | 9 Months Ended
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Sep. 30, 2024
Debt Disclosure [Abstract] |
DEBT | DEBT The following table summarizes the net carrying amount of the Company's outstanding debt as of September 30, 2024 and December 31, 2023, net of debt issuance costs (in thousands):
| September 30, 2024 |  | December 31, 2023
| Outstanding principal |  | Debt issuance costs |  | Net carrying amount |  | Outstanding principal |  | Debt issuance costs |  | Net carrying amount
Current portion | $ | 6,500 |  |  | $ | — |  |  | $ | 6,500 |  |  | $ | 4,063 |  |  | $ | — |  |  | $ | 4,063 |
Long term | 52,000 |  |  | (412) |  |  | 51,588 |  |  | 56,063 |  |  | (490) |  |  | 55,573 |
Total debt | $ | 58,500 |  |  | $ | (412) |  |  | $ | 58,088 |  |  | $ | 60,126 |  |  | $ | (490) |  |  | $ | 59,636 |
Credit Agreement - Silicon Valley Bank On May 24, 2022, Brilliant Earth, LLC, as borrower, and Silicon Valley Bank ("SVB"), as administrative agent and collateral agent for the lenders, entered into a credit agreement (the "SVB Credit Agreement") which provides for a secured term loan credit facility of $65.0 million (the "SVB Term Loan") and a secured revolving credit facility in an amount of up to $40.0 million (the "SVB Revolving Facility," and together with the SVB Term Loan, the "SVB Credit Facilities"). The SVB Credit Facilities are subject to customary affirmative covenants and negative covenants as well as financial maintenance covenants. The financial covenants are tested at the end of each fiscal quarter, and require that (a) the Company and its subsidiaries not have a Consolidated Fixed Charge Coverage Ratio (defined as the ratio of (i) Consolidated EBITDA, less cash taxes (including tax distributions), less certain capital expenditures, less cash dividends and other cash restricted payments, to (ii) the sum of cash interest expense and scheduled principal payments on outstanding debt (in each case, as further defined in the SVB Credit Agreement)) of less than 1.25 to 1.00, (b) the Company and its subsidiaries not have a Consolidated Total Leverage Ratio of more than 4.00 to 1.00, and (c) Brilliant Earth, LLC and its subsidiaries not have a Consolidated Borrower Leverage Ratio (defined substantially similar as Consolidated Total Leverage Ratio, but limited to Brilliant Earth, LLC and its subsidiaries) in excess of 3.00 to 1.00 (which level is subject to temporary increases to 4.00 to 1.00 in connection with certain acquisitions). On February 21, 2024, we entered into the First Amendment to the SVB Credit Agreement (the "First Amendment"), pursuant to which the lenders agreed to suspend the requirement to comply with the Consolidated Fixed Charge Coverage Ratio covenant on the last day of the fiscal quarters ending December 31, 2023, March 31, 2024, and June 30, 2024. The First Amendment also required us to maintain Balance Sheet Cash (defined as unrestricted cash and cash equivalents held in accounts with the lenders and their affiliates) in an amount greater than the sum of the aggregate principal amount outstanding under the SVB Revolving Facility (including issued letters of credit) and the aggregate principal amount of the SVB Term Loan outstanding at such time, which requirement applied at all times commencing on February 21, 2024 until the last day of the fiscal quarter ending June 30, 2024. After such time, the minimum Balance Sheet Cash covenant no longer applied. As of September 30, 2024, the Company was in compliance with all applicable covenants under the SVB Credit Agreement. The Company's debt effective interest rate was 8.49% and 8.49% f or the three months ended September 30, 2024 and 2023, respectively. The Company's debt effective interest rate was 8.44% and 8.14% for the nine months ended September 30, 2024 and 2023, respectively. As of September 30, 2024, there w ere no am ounts outstanding under the SVB Revolving Facility. As of September 30, 2024, the aggregate future principal payments under the SVB Term Loan were as follows (in thousands):
| Principal |  |  |  |
For the remainder of the year ending December 31, 2024 | $ | 2,437 |  |  |  |  |
Years ending December 31, |  |  |  |  |
2025 | 5,688 |  |  |  |  |
2026 | 6,500 |  |  |  |  |
2027 | 43,875 |  |  |  |  |
Total aggregate future principal payments | $ | 58,500 |  |  |  |  |

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