Credit Facility |
12 Months Ended |
|---|---|
Dec. 31, 2025 | |
| Debt Disclosure [Abstract] | 听 |
| Credit Facility | Credit Facility On October听23, 2025, the Company entered into a revolving credit agreement among the Company, as borrower, Wells Fargo Bank, National Association and certain other lenders, which provides for a senior unsecured revolving credit facility (the 鈥淐redit Facility鈥) with aggregate commitments of $500.0 million, with the ability, subject to lender approval, to increase total commitments by up to $250.0 million in minimum increments of $50.0 million. The Credit Facility matures on October听23, 2029.
Borrowings under the Credit Facility bear interest, at the Company鈥檚 option, at either (i) term SOFR plus an applicable margin ranging from 2.25% to 2.50%, or (ii) a base rate plus an applicable margin ranging from 1.25% to 1.50%, in each case depending on the Company鈥檚 consolidated total leverage ratio. The base rate is the greatest of (a) the federal funds rate plus 0.50%, (b) the administrative agent鈥檚 prime rate, and (c) one-month term SOFR plus 1.00%. The Company also pays commitment fees on the unused portion of the Credit Facility and customary letter of credit fees.
The Credit Facility is unsecured; however, it becomes subject to a springing security interest on substantially all equity securities of the Company鈥檚 subsidiaries if the Company鈥檚 consolidated total leverage ratio exceeds 2.50 to 1.0. The Credit Agreement contains customary affirmative, negative and financial covenants and customary events of default, including payment defaults, covenant defaults, cross-defaults to certain other indebtedness, bankruptcy and insolvency events and change-in-control provisions. As of December听31, 2025, the Company was in compliance with all covenants.
In connection with entering into the Credit Facility, the Company incurred $5.1 million of debt issuance costs. These costs are recorded in other assets on the consolidated balance sheet and are amortized on a straight-line basis over the term of the Credit Facility. As of December听31, 2025, unamortized debt issuance costs related to the Credit Facility were $4.9 million.
Interest expense on the Credit Facility includes amortization of debt issuance costs, commitment fees on the unused portion of the facility and, if applicable, interest on outstanding borrowings. For the year ended December听31, 2025, interest expense related to the Credit Facility was $0.7 million, including $0.2 million of amortization of debt issuance costs. The facility was undrawn during the period.
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- References No definition available.
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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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