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Debt | 3 Months Ended
--- | ---
Mar. 31, 2026
Debt Disclosure [Abstract] |
Debt | Debt The following table presents the Company’s debt, other than debt related to securitization activities discussed in Note 4 - Asset Backed Facilities and Note 5 - Securitization Activities.
(in thousands) | March 31, 2026 |  | December 31, 2025
Term Loan due August 2031 (5.92% and 5.98% as of March 31, 2026 and December 31, 2025, respectively) | $ | 1,300,000 |  |  | $ | 1,365,000 |
Finance lease obligations | 201 |  |  | 236 |
Gross long-term debt | 1,300,201 |  |  | 1,365,236 |
Less: current portion of finance lease obligations | (100) |  |  | (113) |
Less: unamortized debt issuance costs on Term Loan | (3,241) |  |  | (3,496) |
Less: unamortized original issue discount on Term Loan | (6,409) |  |  | (6,991) |
Long-term debt, net | $ | 1,290,451 |  |  | $ | 1,354,636 |
Credit Facility On August 19, 2024, the Company entered into a credit agreement, by and among Alliance Laundry Holdings LLC ("Alliance Holdings"), Alliance Laundry as the Borrower (“Borrower”), the lenders party thereto and Citibank, as Administrative Agent (the “Credit Agreement”). The Credit Agreement provides for (i) an initial Term Loan facility (the “Term Loan”) in the aggregate principal amount of $2,075.0 million and (ii) initial revolving credit facilities (the “RCF” and, together with the Term Loan, the “Credit Facility”) of $250.0 million principal amount of revolving commitments, with $225.0 million issuable in U.S. Dollars or Euros and $25.0 million issuable in Thai Baht, with a $102.2 million sub-limit for issuance of letters of credit and a $25.0 million sub-limit for swingline loans. The Term Loan was issued with an original issue discount of 50 basis points. Interest is payable no less frequently than quarterly at the rate of SOFR plus 3.5% (or the applicable base rate plus 2.5%), with a 0.0% SOFR floor. Interest under the RCF accrues at the rate of SOFR plus 3.25% (or the applicable base rate plus 2.25%). On February 20, 2025, we finalized an amendment to our Credit Agreement, which reduced the applicable margin on the Term Loan and RCF. The result was an interest rate on our Term Loan of SOFR plus 2.75% and an interest rate on our RCF of SOFR plus 2.50%. Additionally, we incorporated opportunities for further margin reductions contingent upon achieving improvements in our leverage ratio. The company incurred $1.0 million of fees in connection with the amendment. These fees were expensed and included in Other (income)/expenses, net in the Condensed Consolidated Statement of Comprehensive Income. On August 21, 2025, we finalized an amendment to our Credit Agreement, which reduced the applicable margin on the Term Loan and RCF. The result is an interest rate on our Term Loan of SOFR plus a margin of 2.25% and an interest rate on our RCF of SOFR plus a margin of 2.25%. Additionally, we incorporated opportunities for further margin reductions contingent upon achieving improvements in our leverage ratio and rating agency upgrades. The company incurred $1.3 million of fees in connection with the amendment. These fees were expensed and included in Other (income)/expenses, net in the Condensed Consolidated Statement of Comprehensive Income. As of March 31, 2026, the interest rate under the RCF was 5.92%. Additionally, a commitment fee based upon the Company’s leverage ratio is charged on the unused portion of the commitments under the RCF. As of March 31, 2026, the commitment fee was 0.25%. For the three months ended March 31, 2026, the Company made $65.0 million in voluntary prepayments on the Term Loan. During year ended December 31, 2025, the Company made total voluntary prepayments on the Term Loan of $710.0 million, consisting of a $525.0 million prepayment on October 17, 2025, funded with net proceeds from the Company's initial public offering and cash on hand, and $185.0 million of other voluntary prepayments made during the year. The repayments were first applied to and eliminated the future required quarterly installment principal repayments. The Credit Agreement requires certain mandatory prepayments, including from asset sales and, beginning with the fiscal year ending December 31, 2025, annual prepayments of the Term Loan with 50% of the Company’s Excess Cash Flow, which steps down to 25% if the Company’s net leverage ratio is below 4.75:1 and to 0% if the net leverage ratio is below 4.5:1. Excess Cash Flow is defined in the Credit Agreement as consolidated adjusted EBITDA (earnings before interest, taxes, depreciation and amortization), adjusted for the net change in working capital for the fiscal year, less other specified deductions such as debt and debt service payments, and interest and taxes paid in cash. Working capital is defined as current assets excluding cash and cash equivalents less current liabilities excluding current portion of long term debt and various other adjustments. The Company has not been subject to any mandatory prepayments. Outstanding balances are fully prepayable on a voluntary basis, in whole or in part, without premium or penalty. The remaining balance of the Term Loan is due at maturity on August 19, 2031. The RCF matures on August 19, 2029, and it does not require any installment principal repayments or mandatory commitment reductions. Outstanding balances under the RCF are fully prepayable on a voluntary basis, in whole or in part, and commitments may be terminated, in whole or in part, in each case without premium or penalty. Obligations under the Credit Agreement are secured by substantially all assets of the Company. The Credit Agreement contains covenants that are customary for similar credit arrangements, including, among other things, covenants relating to: (i) financial reporting and notification, (ii) payment of obligations, (iii) compliance with applicable laws, (iv) notification of certain events, and (v) certain covenants limiting the ability of the Borrower and its subsidiaries to, among other things, sell or transfer assets, consummate fundamental changes, incur or guarantee indebtedness or liens, make investments, or enter into transactions with affiliates. The Company is in compliance with all covenants as of March 31, 2026. The RCF is available, subject to certain conditions, for general corporate purposes in the ordinary course of business and for other transactions permitted under the Credit Agreement. A portion of the RCF not in excess of $102.2 million is available for the issuance of letters of credit. As of March 31, 2026, the Company had one irrevocable standby letter of credit outstanding, for a total of $4.5 million, issued to support the Company's insurance obligations. There were no letters of credit outstanding as of December 31, 2025. The RCF was not drawn as of March 31, 2026 or December 31, 2025. Other Debt As discussed in greater detail in Note 5 - Securitization Activities, the Company had total debt outstanding of $620.3 million and $618.6 million related to its securitization activities as of March 31, 2026 and December 31, 2025, respectively. Debt Issuance Costs and Original Issue Discount The following table presents a summary of other disclosure items related to the Company’s debt, which are recorded in interest expense, net line of our Condensed Consolidated Statement of Comprehensive Income:
| Three Months Ended March 31, |  |
(in thousands) | 2026 |  | 2025 |  |  |  |
Amortization expense - debt issuance costs | $ | 388 |  |  | $ | 335 |  |  |  |  |
Amortization expense - original issue discount | $ | 581 |  |  | $ | 398 |  |  |  |  |

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